ACE SECURITIES: Moody's Downgrades Ratings on 38 Certificates-------------------------------------------------------------Moody's Investors Service has downgraded 38 certificates from seven transactions issued by ACE Securities Corp. Home Equity Loan Trust. The transactions are backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were low compared to the current projected loss numbers at the previous rating levels.

The actions take into account the continued and worsening performance of transactions backed by closed-end-second collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default.

ADVANCED MICRO: Moody's 'B2' Rating Unmoved by "Asset Smart" Deal-----------------------------------------------------------------Moody's Investors Service said that Advanced Micro Devices' B2 corporate family rating and negative outlook are not affected by the announcement that the company has reached an agreement related to its long awaited "asset smart" strategy. AMD's current rating and outlook reflect a downgrade to B2 from B1 on August 11, 2008.

The agreement calls for AMD to receive $700 million in cash by forming a manufacturing joint venture with the Advanced Technology Investment Company of Abu Dhabi while the Mubadala Development Company invests an additional $314 million in AMD common stock. Mubadala currently owns approximately 8% of AMD following an initial equity investment in October 2007. The joint venture will also assume approximately $1.1 billion of AMD's debt.

Presuming that the company demonstrates operational progress in the third and fourth quarters of fiscal 2008 and is able to close the transaction within the framework that it has described, Moody's said that the rating outlook could be stabilized. Conversely, the ratings could be reviewed for possible downgrade to the extent that operational progress fails to materialize and/or if the transaction is not consummated.

Advanced Micro Devices, Inc., headquartered in Sunnyvale, California, is the world's second largest designer and manufacturer of microprocessors. With an approximate 20% unit share of the microprocessor market, AMD generated $6.3 billion of revenues for the 12 months ended June 2008.

ALANCO TECH: Losses Insufficient Capital Cue Going Concern Doubt----------------------------------------------------------------Phoenix-based Semple, Marchal & Cooper, LLP, expressed substantial doubt about Alanco Technologies, Inc.'s ability to continue as a going concern after it audited the company's financial statements for the year ended June 30, 2008. According to the auditing firm, the company has suffered recurring losses from operations, anticipates additional losses in the next year, and has insufficient working capital as of June 30, 2008 to fund the anticipated losses.

The company posted a net loss attributable to common stockholders of $9,748,600 on net sales of $17,211,000 for the year ended June 30, 2008, as compared with a net loss attributable to common stockholders of $5,871,700 on net sales of $18,474,100 in the prior year.

Management Statement

The company incurred significant losses and negative cash flows from operations during fiscal year ended June 30, 2008, and in prior fiscal years, and anticipates additional losses and negative cash flows in early fiscal year 2009. These factors, as well as the uncertain conditions that the company faces regarding its ability to secure significant contracts for the TSI PRISM installations and StarTrak products, creates an uncertainty about the company's ability to finance its operations and remain a going concern.

Although management cannot assure that future operations will be profitable or that additional debt or equity capital will be raised, management believes cash balances at June 30, 2008, of around $726,900 and the raising of around $2,500,000 of additional equity capital and $500,000 increase in the company's line of credit subsequent to the end of fiscal 2008 will provide adequate capital resources to maintain the company's net cash requirements for the next year. However, if additional working capital is required and not obtained through long-term debt, equity capital or operations, it could adversely affect future operations.

Management has historically been successful in obtaining financing and has demonstrated the ability to implement a number of cost-cutting initiatives to reduce working capital needs. The company requires and continues to pursue additional capital for growth and strategic plan implementation.

Liquidity and Capital Resources

The company's current assets exceeded current liabilities by $759,300 at June 30, 2008, representing a current ratio of 1.1 to 1. That was a significant improvement when compared with June 30, 2007, when the company's current liabilities exceeded current assets by $248,300, resulting in negative working capital and a current ratio of .97 to 1.

Net cash used in investing activities during the current year was $90,500 compared with net cash provided from investing activities of $576,000, a decrease of $666,500, from the previous year. The current year decrease was due primarily to cash from sale of assets held for sale at June 30, 2007, of $747,400.

Net cash provided by financing activities during fiscal year ended June 30, 2008, amounted to $6,820,800 compared with $5,965,000 for the prior year. Significant items for the current year include $5,090,900 in net proceeds from the sale of common stock, $2,733,600 in net proceeds from the sale of preferred stock, reduced by net repayment on borrowing of $997,100. Significant items for fiscal year 2007 include $3,112,400 in net proceeds from the sale of common stock and $2,852,600 in net new borrowing (primarily $4 million term loan offset by debt repayment).

The company had a $2,000,000 line of credit balance under a $2 million line of credit agreement with a private trust that was last amended, prior to June 30, 2008, effective Feb. 26, 2008. The secured line of credit is based upon accounts receivable and inventory values, and is secured by substantially all assets of the company. The line of credit has an interest rate of prime plus 3% (8.0% at June 30, 2008). Under the amended line of credit agreement, the company must maintain a balance due under the line of at least $1,500,000 through June 2009. Due to the minimum borrowing requirement and the July 2010 expiration, the balance due is presented at June 30, 2008, and 2007 as notes payable, long term.

Considering the company's working capital position at year-end and the projected cash requirements to fund operations, management estimates that the year-end cash balance of $726,900 would have been adequate to meet cash requirements for around a three-month period. Subsequent to year-end, the company completed additional financings of around $2,500,000.

Balance Sheet

At June 30, 2008, the company's balance sheet showed $29,096,900 in total assets, $11,561,600 in total liabilities, $900,500 in Series B convertible preferred stock, and $16,634,800 in total stockholders' equity.

The company's consolidated balance sheet at June 30, 2008, showed $8,671,600 in total current assets available to pay $7,912,300 in total current liabilities.

ALION SCIENCE: Moody's Holds 'Caa1' Rating; Keeps Neg. Outlook--------------------------------------------------------------Moody's Investors Service has upgraded the speculative grade liquidity rating of Alion Science and Technology Corporation to SGL-3 from SGL-4. All other ratings, including Alion's Caa1 corporate family and probability of default ratings, have been affirmed. The rating outlook remains negative.

The SGL rating upgrade reflects Alion's recently improved liquidity profile and positive working capital management developments. On August 29, 2008 Alion amended a seller note and rights agreement that, among other changes, extended the maturity of and reduced the near-term cash interest rate on approximately $55 million of subordinated notes. On October 2, 2008 Alion amended its TL-B senior secured credit facility which, among other changes, loosened upcoming financial covenant test ratios.

The company has made significant progress with its receivables collections practices during the second half of FY2008 which enabled Alion to repay all borrowings under its $50 million revolving credit line as of September 30, 2008. The impact of the amendments and the enhanced liquidity cushion that now exists bodes well for the company's prospects to meet its operational cash needs and to avoid the tight liquidity predicament which arose earlier in FY2008.

Although the company's liquidity profile has improved, the corporate family and probability of default ratings remain Caa1 and the outlook remains negative, reflecting a highly leveraged capital structure, and the August 2009 expiration of Alion's $50 million revolving credit line. Furthermore, with its current debt load, in order to generate a meaningful level of free cash flow the company must further grow its revenue base while improving and sustaining better working capital management. Alion's good funded backlog level and the high level of contract bids pending might enable such performance gains.

However, little room for error will exist due to higher cash interest requirements upcoming, an expectation of tight financial covenant headroom, the unpredictability of government payment practices, and the possibility that employee stock option distribution requests could also consume cash.

The ratings would likely be revised downward if the company struggles to replace its revolving credit facility in coming months, if Alion's performance level declines, or if the potential for a covenant breach rises. Should the company successfully replace its revolving credit line and attain both higher earnings and a materially higher level of free cash flow, the ratings or outlook could improve.

In addition to the mentioned rating affirmations, these affirmations have occurred:

Alion Science and Technology Corporation, based in McLean, Virginia, is an employee-owned company that provides scientific research, development, and engineering services related to national defense, homeland security, and energy and environmental analysis. Particular areas of expertise include naval architecture and engineering, communications, wireless technology, netcentric warfare, modeling and simulation, chemical and biological warfare, and program management. Revenues for the 12 months ended June 30, 2008 were $742 million.

AMERICAN FIBERS: U.S. Trustee Forms 3-Member Creditors' Committee-----------------------------------------------------------------Bill Rochelle of Bloomberg News reports that the U.S. Trustee for Region 3 formed the Official Committee of Unsecured Creditors of American Fibers & Yarns Co. and affiliate AFY Holdings Co. with three members, one of which is packaging maker Sonoco Products Co.

Headquartered in Chapel Hill, North Carolina, American Fibers and Yarns Company -- http://www.afyarns.com/-- is a supplier of dyed yarns to the automotive and apparel industries. The company and its affiliates, AFY Holding Company, filed for Chapter 11 protection on Sept. 22, 2008 (Bankr. D. Del. lead case no. 08-12176). Edward J. Kosmowski, Esq., and Michael R. Nestor, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Debtors selected RAS Management Advisors LLC as proposed financial advisor. Epiq Bankruptcy Solution will serve as the Debtors' claims agent. When the Debtors filed for protection from their creditors, they listed assets and debts of between $10 million and $50 million.

AMERICAN HOME: Moody's Junks Rating on Class II-M2 Trusts---------------------------------------------------------Moody's Investors Service has downgraded 4 certificates from American Home Mortgage Investment Trust 2005-SD1. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were low compared to the current projected loss numbers at the previous rating levels.

The actions take into account the continued and worsening performance of transactions backed by closed-end-second collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default.

AMERICAN INTERNATIONAL: Gov't to Lend Firm Additional $37.8BB -------------------------------------------------------------Liam Pleven, Sudeep Reddy, and Carrick Mollenkamp at The Wall Street Journal report that the federal government said on Wednesday it would lend $37.8 billion to American International Group Inc.

WSJ relates that with the additional loan, the government raised by almost 50% the amount it could lend to AIG as concerns that the firm could once again run short on cash appeared to increase.

AIG's domestic life insurance subsidiaries have entered into a securities lending agreement with the Federal Reserve Bank of New York. Under the Securities Lending Agreement, the Federal Reserve will borrow, on an overnight basis, investment grade fixed income securities from the AIG subsidiaries in return for cash collateral. As expected, drawdowns under the existing Federal Reserve credit facility have been used, in part, to settle securities lending transactions. The New York Fed is prepared to borrow securities to extend AIG's currently outstanding lending obligations where those obligations are not rolled over or replaced by transactions with other private market participants. These borrowings by the Federal Reserve will allow AIG to replenish liquidity to the securities lending program on an as-needed basis, while providing possession and control of these third-party securities to the Federal Reserve. As of Oct. 6, 2008, about $37.2 billion of securities were subject to loans under AIG's securities lending program.

WSJ relates that AIG incurred losses stemming from complex credit derivatives that helped lead to the firm's downfall and faces extensive losses from a program that involves securities used to back up life-insurance policies in its regulated subsidiaries. WSJ states that under the program, AIG lent out securities to third parties and received collateral in return. AIG, according to the report, had invested some of that collateral in other assets that devaluated. The reports states that AIG was sometimes unable to lend the securities back for fresh collateral.

WSJ reports that it was revealed during a congressional hearing on Tuesday, where two former AIG CEOs were questioned on the firm's downfall, that the company spent over $440,000 at a California resort for a gathering of insurance agents for one of its life-insurance subsidiaries, after the firm secured the $85 billion loan from the Federal Reserve.

AIG's Chairperson and CEO Edward M. Liddy sent a letter to the U.S. Treasury Secretary Henry M. Paulson to clarify the circumstances of the business event held by an AIG subsidiary which was discussed during the hearing by the House Committee on Oversight and Government Reform. The event, said Mr. Liddy, was mischaracterized as an "Executive Retreat." It was held by one of AIG's insurance subsidiaries for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended. The meeting was planned months before the Federal Reserve's loan to AIG.

Mr. Liddy assured Secretary Paulson that AIG now faces very different challenges, and "that we owe our employees and the American public new standards and approaches." Mr. Liddy assured Secretary of the Treasury Paulson that AIG is "reevaluating the costs of all aspects of our operations in light of the new circumstances in which we are all operating."

Mr. Liddy concluded, that "AIG is focused on doing what is necessary to address our capital structure, repay the Fed credit facility and emerge as a healthy global insurer. In the meantime, our insurance businesses continue to operate normally and satisfy the needs of our policy holders."

Based in New York City, American International Group Inc. --http://www.aig.com/-- (NYSE: AIG) is an international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. The company is engaged through subsidiaries in General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management.

The company's British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian HQ is in Hong Kong. AIG owns Ocean Finance, a United Kingdom based company providing home owner loans, mortgages and remortgages. AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsors the Manchester United football club. In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on Sept. 19, 2008, in order to provide an orderly withdrawal of assets.

The Federal Reserve Bank of New York has extended to AIG arevolving credit facility up to $85 billion. AIG's borrowingsunder the revolving credit facility will bear interest, for each day, at a rate per annum equal to three-month Libor plus 8.50%. The revolving credit facility will have a 24-month term and will be secured by a pledge of assets of AIG and various subsidiaries. The revolving credit facility will contain affirmative and negative covenants, including a covenant to pay down the facility with the proceeds of asset sales.

The summary of terms also provides for a 79.9% equity interest in AIG. The corporate approvals and formalities necessary to create this equity interest will depend upon its form.

In a statement, the company said "AIG is a solid company with over $1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues."

Standard & Poor's Ratings Services has revised the CreditWatchstatus of most of its ratings on the AIG group of companies --including its 'A-' long-term counterparty credit ratings onAmerican International Group Inc. and International Lease Finance Corp. and the 'A+' counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries -- to CreditWatch developing from CreditWatch negative.

Fitch Ratings revised its Rating Watch on American International Group, Inc. to Evolving from Negative. Fitch viewed this transaction as a favorable development that alleviates significant near-term liquidity concerns.

In a U.S. Securities and Exchange Commission filing dated Aug. 6, 2008, AIG reported a net loss for the second quarter of 2008 of $5.36 billion compared to 2007 second quarter net income of $4.28 billion. Second quarter 2008 adjusted net loss was $1.32 billion, compared to adjusted net income of $4.63 billion for the second quarter of 2007. The continuation of the weak U.S. housing market and disruption in the credit markets, as well as global equity market volatility, had a substantial adverse effect on AIG's results in the second quarter.

Net loss for the first six months of 2008 was $13.16 billion,compared to net income of $8.41 billion in the first six monthsof 2007. Adjusted net loss for the first six months of 2008 was $4.88 billion, compared to adjusted net income of $9.02 billion in the first six months of 2007.

AMERIGROUP CORP: Moody's Lifts Ratings on Better Settlement Deal----------------------------------------------------------------Moody's Investors Service has upgraded the senior debt rating of AMERIGROUP Corporation's senior secured credit facility to Ba2 from Ba3. Moody's also upgraded AMERIGROUP's corporate family rating to Ba3 from B1 and the insurance financial strength ratings of AMERIGROUP Texas Inc., AMERIGROUP MD Inc., AMERIGROUP FL Inc., and AMERIGROUP NJ to Baa3 from Ba1. The outlook on the ratings is stable.

The rating agency said that the upgrade reflects the better than expected terms of the settlement agreement AMERIGROUP finalized in August with respect to a qui tam action filed against the company. In settling the action, the company paid out approximately $100 million less than the March 2007 $334 million court judgment against the company. In addition, AMERIGROUP indicated its intention to reduce the amount outstanding on its credit facility by approximately half before the end of the year.

Moody's also stated that when AMERIGROUP's ratings were assigned in March 2007, they reflected the risk that the company may be subject to greater regulatory scrutiny, investigation, action, and litigation, or may be excluded from bidding on future state or federal business as a result of the qui tam judgment. According to Moody's, this risk has been reduced by language in the settlement agreement that releases the company from further civil and administrative monetary claims and penalties.

In addition, the office of the Inspector General of the Department of Health and Human Services has agreed not to exclude AMERIGROUP from Medicare, Medicaid, or other Federal health care programs in connection with the qui tam charges. Moody's noted that in 2008 the company has successfully renewed its Medicaid program in several states and been awarded additional business in Florida, New Mexico and Nevada.

The rating agency said that the ratings could be upgraded if NAIC RBC rises above 175% of company action level, net margins improve to 3.5%, and if there is continued expansion into new geographies or introduction of new products in existing states. However, if there is a loss or impairment of one or more of AMERIGROUP's Medicaid contracts, EBIT to interest expense falls below 6x, debt to EBIT increases above 4x, or if net after-tax margins fall below 2%, then Moody's said the ratings could be lowered.

AMERIGROUP Corporation is headquartered in Virginia Beach, Virginia. For the first six months of 2008, total revenue was $2.2 billion with medical membership as of June 30, 2008 of approximately 1.7 million. As of June 30, 2008 the company reported shareholders' equity of $774 million.

Moody's health insurance financial strength ratings are opinions about the ability of life and health insurance companies to punctually repay senior policyholder claims and obligations.

Moody's corporate family rating is an opinion of a corporate family's ability to honor all of its financial obligations and is assigned to a corporate family as if it had a single class of debt and a single consolidated legal entity structure.

AMR CORPORATION: American Airlines Posts Lower September Traffic----------------------------------------------------------------AMR Corporation disclosed in a Securities and Exchange Commission filing that American Airlines reported a September load factor of 76.6%, a decline of 1.8 points versus the same period last year. Traffic decreased 9.1% and capacity decreased 7.0% year over year.

Domestic traffic decreased 11.7% year over year on 9.4% less capacity. International traffic decreased by 4.8% relative to last year on a capacity decrease of 2.7%.

Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:AMR) operates with its principal subsidiary, American AirlinesInc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jetservice to about 150 destinations throughout North America, theCaribbean, Latin America, including Brazil, Europe and Asia.American is also a scheduled airfreight carrier, providingfreight and mail services to shippers throughout its system.

Its wholly owned subsidiary, AMR Eagle Holding Corp., owns tworegional airlines, American Eagle Airlines Inc. and ExecutiveAirlines Inc., and does business as "American Eagle." AmericanBeacon Advisors Inc., a wholly owned subsidiary of AMR, isresponsible for the investment and oversight of assets of AMR'sU.S. employee benefit plans, as well as AMR's short-terminvestments.

* * *

As reported in the Troubled Company Reporter on August 5, 2008,the TCR said that Moody's Investors Service downgraded theCorporate Family and Probability of Default Ratings of AMR Corp.and its subsidiaries to Caa1 from B2, and lowered the ratings ofits outstanding corporate debt instruments and certain equipmenttrust certificates and Enhanced Equipment Trust Certificates ofAmerican Airlines Inc. The company still carries Moody's NegativeOutlook.

As reported by the Troubled Company Reporter on September 9, 2008,Michael Lowry, project manager for AVIATION WEEK's latest Top-Performing Companies report, said American Airlines, among othercarriers, at high risk of bankruptcy in 2009.

Headquartered in Santa Monica, California, ARTISTdirect Inc.(OTC.BB: ARTD) -- http://artistdirect.com/-- is a digital media entertainment company that is home to an online music network and,through its MediaDefender subsidiary, is a provider of anti-piracysolutions in the Internet-piracy-protection industry.

The Troubled Company Reporter reported on Sept. 11, 2008, thatARTISTdirect Inc.'s consolidated balance sheet at June 30, 2008,showed $17,588,000 in total assets and $47,417,000 in totalliabilities, resulting in a $29,829,000 stockholders' deficit. AtJune 30, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $9,184,000 in total current assetsavailable to pay $47,244,000 in total current liabilities. Thecompany reported a net loss of $29,916,000 on total net revenue of$2,720,000 for the second quarter ended June 30, 2008, as comparedto a net loss of $3,486,000 on total net revenue of$6,593,000 in the corresponding period a year ago.

On Feb. 7, 2008, the company retained the services of SalemPartners, LLC, to serve as a financial advisor to the company inconnection with the sale, merger, consolidation, reorganization orother business combination and the restructuring of the materialterms of the company's senior notes and subordinated convertiblenotes. The company said that if the company is unable to completea sale or merger or restructure its senior and subordinated debtobligations in a satisfactory manner and the lenders begin toexercise additional remedies to enforce their rights, the companywill not have sufficient cash resources to maintain itsoperations. In such event, the company may be required toconsider a formal or informal restructuring or reorganization,including a filing under Chapter 11 of the United StatesBankruptcy Code.

ATHEROGENICS INC: Wants Chapter 7 Converted to Chapter 11 Case--------------------------------------------------------------AtheroGenics Inc. asks the United States Bankruptcy Court for the Northern District of Georgia to convert its Chapter 7 liquidation proceeding to a case under Chapter 11 of the Bankruptcy Code.

The Debtor says it elects to exercise its rights to convert thecase, citing Section 706(a) of the Bankruptcy Code, which gives the Debtor an absolute on-time right to convert a Chapter 7case to a Chapter 11 case. The Debtor argues that its case hasnot been converted and it is eligible to be a debtor under Chapter11.

According the Debtor's regulatory filing with the Securities and Exchange Commission on Oct. 7, 2008, the bankruptcy filing became necessary as a result of its substantial debt burden, which created a significant impediment to its ability to effectively develop its primary asset, AGI-1067.

During the bankruptcy proceedings, the Debtor expects to sell the company and its key assets. The proceeds from any transactions will be distributed to the company's stakeholders including its creditors. Before the sale process, the Debtor cannot forecast the amount of these proceeds or whether the combination of sale proceeds and cash on hand will exceed its liabilities. Therefore, the company cannot predict whether or not any proceeds will be distributed to shareholders.

"We believe that the Chapter 11 filing is a necessary step in response to the creditors' involuntary liquidation petition," said Russell M. Medford, M.D., Ph.D., President and Chief Executive Officer of AtheroGenics. "We remain hopeful that AGI-1067 will ultimately continue to be developed, as we believe that it has real potential to be the first diabetes treatment that could reduce serious cardiovascular events. There remains a significant medical need and commercial opportunity for a drug with this profile," Mr. Medord continued.

Merriman Curhan Ford and Co. has been retained by the Debtor to assist with the sale of its assets.

The noteholders hold roughly $20.4 million of the Debtor's 4-1/2% convertible notes due 2008, which the Debtor failed to repay when it came due on Sept. 2, 2008.

About AtheroGenics

Headquartered in Alpharetta, Georgia, AtheroGenics Inc. --http://www.atherogenics.com/-- is a research-based pharmaceutical company focused on the discovery, developmentand commercialization of drugs for the treatment of chronicinflammatory diseases, including diabetes and coronary heartdisease. It has one late stage clinical drug development program.

Interested party The Bank of New York Mellon, fka The Bank of NewYork, is represented by John D. Elrod, Esq., at Greenberg, Traurig, LLP.

As of June 30, 2008, AtheroGenics had $72.41 million in total assets, $294.57 million in total liabilities, resulting in $222.17 million in shareholders' deficit.

ATHEROGENICS: List of 20 Largest Unsecured Creditors----------------------------------------------------AtheroGenics Inc. delivered to the United States Bankruptcy Courtfor the Northern District of Georgia a list of its 20 LargestUnsecured Creditors:

Headquartered in Alpharetta, Georgia, AtheroGenics Inc. --http://www.atherogenics.com/-- is a research-based pharmaceutical company focused on the discovery, developmentand commercialization of drugs for the treatment of chronicinflammatory diseases, including diabetes and coronary heartdisease. It has one late stage clinical drug development program.

Interested party The Bank of New York Mellon, fka The Bank of NewYork, is represented by John D. Elrod, Esq., at Greenberg, Traurig, LLP.

As of June 30, 2008, AtheroGenics, Inc. had $72.41 million intotal assets, $294.57 million in total liabilities, resulting in$222.17 million in shareholders' deficit.

ATLANTIS PLASTICS: Court Approves Sale of All Assets for $107.7MM-----------------------------------------------------------------The Hon. Paul W. Bonapfel of the United States Bankruptcy Courtfor the Northern District of Georgia approved acquisition ofsubstantially all of the assets of Atlantis Plastics Inc.'s:

-- plastic films division to AEP Industries Inc. for approximately $87,000,000, and

The Debtor said Custom Plastic was the successful bidder for themolded products in the October 2 auction. No auction auctionoccurred for the film division, as no qualified bids werereceived.

The Debtor expects that both sales will close by the end of thismonth.

In connection with the sales, the Court also approved the Debtors'wind-down budget and establishment of certain accounts. Monieswill be reserved from the closing purchase price to fund certainseparate accounts in the aggregate:

a) $916,177 to fund unpaid amounts for the management program and severance plan;

b) an amount equal to the reserve amount of $4,058,774 to be maintained in accordance with the final DIP order;

c) $1,095,000 to fund unpaid administrative expense of the Debtors' estates incurred on or after their bankruptcy filing;

d) $3,000,000 to fund unpaid pre-carve-out triggers dates expenses and fees of the United States Trustee incurred through after the closing dates; and

e) $1,114,000 to fund any administrative expenses of the Debtors' including fees and expenses of their professionals.

"We are pleased with the culmination of the process, whichcommenced in January of this year," Bud Philbrook, CEO andPresident of Atlantis Plastics, Inc., stated. "We areparticularly gratified that our employees will have good homeswith both AEP and Monomoy Capital." He added.

"We certainly expect that the customers of Atlantis Plastics willcontinue to enjoy relationships with organizations that believe insolutions innovation and industry-leading product quality andservice, at a level consistent with that which they have grownaccustomed to," Mr. Philbrook said. "We also anticipate thatsuppliers will have the opportunity to grow with the new owners," he continued.

David B. Kurzweil, Esq., at Greenberg Traurig, LLP, represents theDebtors in their restructuring efforts. They listed assetsbetween of $100 million and $500 million and debts of between$100 million and $500 million. The Debtors owe The Bank of NewYork $75 million in unsecured loan and Equistar $1 million inunsecured trade debt.

As of September 2007, Atlantis Plastics had $214 million in totalassets, $255 million in total liabilities, and $41 million instockholders' deficit.

BILL HEARD: Wants Assets Sale Procedures Approved-------------------------------------------------Bill Rochelle of Bloomberg News reports that Bill Heard Enterprises, Inc., and its debtor-affiliates asked the U.S.Bankruptcy Court for the Northern District of Alabama to approve procedures to sell their assets.

The Court has scheduled a hearing for approving the procedures on Oct. 10, 2008.

The Debtors, according to the report, say two of the three lenders financing inventory agreed to provide cash to facilitate an "orderly liquidation." Prospective buyers must win approval from General Motors Corp. to take over a dealership, according to the report. The buyer can purchase the unsold autos at the location being acquired, under proposed sale procedures, according to the report.

The Debtors' request didn't include dates for the auction or the submission of bids, according to the report.

About Bill Heard

Headquartered in Huntsville, Alabama, Bill Heard Enterprises Inc. -- http://www.billheardhuntsville.com/-- is one of the largest dealers of Chevrolet in the United States. The company and 17 of its affiliates filed for Chapter 11 protection on Sept. 28, 2008 (Bankr. N.D. Ala. Lead Case No. 08-83028). Derek F. Meek, Esq., at Burr & Forman, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets and debts of between $500 million and $1 billion each.

BILL HEARD: Hires Document Specialists to Sell Stores-----------------------------------------------------Chicago-based Development Specialists Inc. has been hired by Bill Heard Enterprises to negotiate the sale of the dealerships, including the flagship store in Columbus, the Ledger-Inquirer (Columbus, Georgia) reported.

Bill Heard Enterprises, once one of the largest Chevrolet dealers in the nation, closed all of its stores Sept. 24, putting 2,700 people out of work. On Sept. 28, the company filed for Chapter 11 bankruptcy protection.

According to the report, DSI Agent Fred Caruso said that it has set a 45-day timetable to close the sale of all the stores and obtain bankruptcy court approval. DSI was hired before the bankruptcy to handle the liquidation of dealerships, Mr. Caruso said.

"My primary role in the Bill Heard bankruptcy is to sell as many of the Bill Heard dealerships located in Georgia, Florida, Alabama, Arizona, Texas and Tennessee as 'turn key' operations as possible," Mr. Caruso said, according to the report. "If successful, it is my hope that many of the former employees will have new job opportunities and that this process will maximize the resulting sale proceeds for creditors."

The report adds that all deals must be approved by Bankruptcy Court Judge Jack Caddell and General Motors, Chevrolet's parent company. The goal is to submit the offers to Judge Caddell for his approval by Oct. 14, Mr. Caruso said.

"There have been expressions of interest in many locations," Mr. Caruso said. "On a location-by-location basis, we will submit the best offer for court approval."

Mr. Caruso would not discuss potential offers on specific dealerships, including Columbus, the report notes.

As for the company's flagship store location in Columbus, the sale of the dealership will involve multiple transactions, Mr. Caruso said. The dealership, even though it ceased operations last week, is owned by Heard Enterprises. The nearly 25-acre lot on Manchester Expressway is owned by Twentieth Century Land Corp. Bill Heard Jr. is chief executive officer of Heard Enterprises and Twentieth Century Land Corp.

The mortgage on the Columbus car property is held by Columbus Bank & Trust Co., Mr. Caruso said.

"In most cases the dealership is owned by one legal entity and the land by another," Mr. Caruso said, according to the report. "The two will be sold hand in hand."

The report relates that two local groups have publicly expressed an interest in buying the Columbus dealership. Former Bill Heard Cadillac General Manager Chris French has put together an investment group to make an offer on the dealership. Carl Gregory, who has owned a Columbus Chrysler, Honda and Jeep dealership for two decades, tried to buy the dealership before Heard filed for bankruptcy.

As part of the bankruptcy, Heard Enterprises borrowed $6.716 million from GMAC, the company that cut off credit in August. The loan will help Heard Enterprises close its operations.

About Bill Heard

Headquartered in Huntsville, Alabama, Bill Heard Enterprises Inc.-- http://www.billheardhuntsville.com/-- was once one of the largest dealers of Chevrolet in the United States. The company and 17 of its affiliates filed for Chapter 11 protection on Sept. 28, 2008 (Bankr. N.D. Ala. Lead Case No. 08-83028). Derek F. Meek, Esq., at Burr & Forman, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets and debts of between $500 million and $1 billion each.

BLUE HOLDINGS: Reports $3.9 Million Net Loss for June 30, 2008--------------------------------------------------------------Blue Holdings, Inc., reported a $3,970,546 net loss on net sale of$4,712,793 for the three months ended June 30, 2008, compared toa $1,042,746 net loss on net sale of $8,401,971 for the sameperiod a year earlier.

The company's condensed consolidated balance sheets at June 30,2008, showed $11,243,759 in total assets and $20,709,551 resultingin a $9,465,792 stockholders' deficit.

The company's condensed consolidated balance sheets further showedstrained liquidity with $10,552,859 in total current assetsavailable to pay $20,012,884 in total current liabilities.

On April 8, 2008, Weinberg & Company, P.A., of Los Angeles,California, expressed substantial doubt about Blue Holdings Inc.'sability to continue as a going concern after auditing thecompany's consolidated financial statements for the years endedDec. 31, 2007, and 2006. The firm reported that the company hasincurred a loss from operations during the year ended Dec. 31,2007, and a working capital and stockholders' deficit as of thatdate.

About Blue Holdings

Based Commerce, California, Blue Holdings, Inc., through itssubsidiaries, engages in the design, development, marketing, anddistribution of fashion jeans, apparel, and accessories for women,men, and children.

BYSYNERGY LLC: Files Disclosure Statement in Arizona----------------------------------------------------Bysynergy LLC submitted to the U.S. Bankruptcy Court for the District of Arizona a disclosure statement explaining its plan of reorganization.

The Plan will be funded from three principal sources of revenue:

(1) Within 2 days of confirmation, CEO Michael A. Zito, the Debtor's sole shareholder, will invest $750,000, in additional equity.

(2) The plan will receive funding from two bulk sales of units which will close on or before the effective date. The purchase contracts will be supported by deposits of $675,000, for Contract Block I, consisting of 9 lots, and $525,000, for Contract Block II, consisting of 7 lots, to be deposited with Land America Title Company, in Sedona, California. Contract Block I will yield net proceeds of $3,411,000, with the purchaser paying all closing costs. The purchaser has required that all these proceeds will go to fund the remaining infrastructure construction. Contract Block II will yield net proceeds of $2,643,000, wih the purchaser paying all closing costs. The full amount of the proceeds from Contract II will be paid to M&I Bank as a reduction of the amount of its allowed claim.

(3) The plan will receive proceeds from the orderly sale of lots over a period of 24 months.

Treatment of Claims

Class 1 priority claims, which include administrative claims and expenses, and wage claims of employees, will be paid in full.

The Class 2A secured claim of M&I Bank, totaling $10,500,000, will receive a distribution of $2,643,000, on the effective date. Thereafter, the Debtor will pay M&I monthly interests on its outstanding loan balance at its contract rate of prime plus 2% of the outstanding balance. The remaining principal due to M&I Bank will be paid on a lot by lot basis, by a payment of a release price of $99,341.

The Class 2B secured claim of Fred Schuerman, totaling $1,625,000, will be paid out of the proceeds of sales of lots after the Class 2A creditor is paid in full. The claim will receive no interest.

The Class 2C secured tax claims will be paid out of the proceeds of the sale of each lot, and will release its lien on such lot at the closing of the sale. Class 2C claim will accrue interest at the plan rate.

Class 3A general unsecured claims and Class 3B deficiency claims will receive distributions from the reorganized debtor in quarterly installments based upon the available funds, commencing after Class 2 claims are paid in full. The quarter will start on February 1, May 1, August 1, and November 1 of each year. Each installment will be payable on or before the 15th day of the month following the close of the quarter.

Class 4 claims, which include claims of insiders, affiliates, and ineligible creditors, will be disallowed and will receive no distributions under the Plan.

Class 5 equity interests claims will receive no distributions until all allowed claims are paid in full.

About Bysynergy LLC

Based in Sedona, Arizona, Bysynergy, LLC, provides managementservices. The Debtor filed for Chapter 11 protection on June 25,2008 (D. Ariz. Case No. 08-07680). Michael W. Carmel, Esq., in Phoenix, Arizona, represents the Debtor as its counsel. When Bysynergy, LLC filed for protection from its creditors, it listed estimated assets of between $10 million and $50 million, and estimated debts of between $10 million and $50 million.

CALIFORNIA: May Seek $7 Billion Loan to Pay for Public Services---------------------------------------------------------------California's Governor Arnold Schwarzenegger told the U.S. federal government that his state might seek a $7 billion emergency loan to maintain the state government's day-to-day operations, Xinhua News reports.

Xinhua relates that Gov. Schwarzenegger sent a letter to U.S. Treasury Secretary Henry Paulson, saying, "Absent a clear resolution to this financial crisis, California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing."

According to Xinhua, Gov. Schwarzenegger is asking the government to protect California if it fails to secure financing from the market, which state officials say could result to suspension of payments to schools and other government entities and laying off of state workers.

Xinhua states that California State Treasurer Bill Lockyer had warned that unless the current credit crunch is solved, the state might exhaust its reserves for public spendings within a month.

Mike Zapler at Mercury News relates that Gov. Schwarzenegger met with legislative leaders on Wednesday to discuss how to avoid running out of money within weeks and how to handle a possible multi-billion deficit in the months to follow.

Mercury News quoted Assembly Speaker Karen Bass, D-Los Angeles, as saying, "Hopefully the credit market will loosen up and we'll be able to get that. We do believe it will."

According to Mercury News, the $103.4 billion budget that Gov. Schwarzenegger signed off in September is already more than $1 billion "in the red," and officials expect it to increase to $3 billion during this fiscal year, which ends June 30, 2009.

Gov. Schwarzenegger said he and legislative leaders would continue to meet weekly to assess the state's finances, Mercury News states.

CALIFORNIA MOTOCROSS: Project to Proceed Despite Bankruptcy-----------------------------------------------------------Todd Nelson, the developer of a proposed $109 million motocross complex in California's Placer County, said the project will proceed despite California Motocross LLC's Chapter 11 petition, Kelly Johnson of the Sacramento Business Journal reported Friday.

According to the report, Mr. Nelson said that the company was forced to file for Chapter 11 bankruptcy only because a creditor demanded payment for the land where the project would stand and a bridge loan temporarily dried up as a result of the credit crunch.

The report says Mr. Nelson and his family still plan to build the sports complex on 160 acres west of Lincoln near Thunder Valley Casino.

"The project's not dead," he said, according to the report. "It's just delayed."

CALIFORNIA OIL: Sells 4MM Shares to Carol McLeod for $200,000-------------------------------------------------------------California Oil & Gas Corp. disclosed in a Securities and Exchange Commission filing that on Sept. 29, 2008, it entered into a subscription agreement with Carol McLeod, under which the company agreed to issue 4,000,000 shares of common stock at a price of $0.05 per share to Ms. McLeod for gross proceeds of $200,000.

Going Concern Doubt

LBB & Associates Ltd., LLP in Houston, Texas, expressedsubstantial doubt about California Oil & Gas Corp.'s ability tocontinue as a going concern after auditing the company's financialstatements for the year ended Nov. 30, 2007. The auditing firmpointed to the company's absence of significant revenues,recurring losses from operations, and its need for additionalfinancing in order to fund its projected loss in 2008.

Through May 31, 2008, the company has incurred losses of$4,111,173 since inception.

California Oil & Gas Corp. reported a net loss of $310,615 on gassales, net of royalty of $64,603 for the second quarter endedMay 31, 2008, compared with a net loss of $341,094 on gas sales,net of royalty of $10,789 in the same period ended May 31, 2007.

At May 31, 2008, the company's balance sheet showed $1,054,097 intotal assets, $857,364 in total liabilities, and $196,733 in totalshareholders' equity.

The company's balance sheet at May 31, 2008, also showed strainedliquidity with $181,527 in total current assets available to pay$857,364 in total current liabilities.

About California Oil

Headquartered in Calgary, Alberta, California Oil & Gas Corp.(OTC BB: COGC) -- http://www.caloilandgas.com/-- is a publicly traded oil and gas company with assets in the San Joaquin Basin ofCalifornia and in Louisiana. The company is focussed on exploringhigh yield oil and gas prospects both domestically andinternationally. The company is a gas producer and is targetingthe acquisition of late stage exploration or early stagedevelopment projects around the globe.

Aequitas Catalyst loaned $500,000 to the Company, which loan was evidenced by a note. The Company borrowed the $500,000 of capital for strategic purposes.

The Note bears interest at 5% per annum. There is no required payment on the Note until at least 91 days following the date the March 2008 Debentures are paid in full,.

If the Company raises not less than $7,000,000 in an equity or equity-linked financing transaction prior to Oct. 31, 2008, then the Note shall automatically convert into the same type of securities of the Company to be issued as part of the Subsequent Financing, on a dollar for dollar basis.

If a Subsequent Financing does not occur by Oct. 31, 2008, on the following day the Note shall convert into a new secured subordinated Debenture substantially in the form of the March 2008 Debentures, with some modifications.

If the New Secured Subordinated Debenture is issued, the Company will also issue to Lender warrants to purchase 500,000 shares of the Company's common stock.

About Capital Growth

Based in Chicago, Capital Growth Systems Inc. (OTC BB: CGSY) doingbusiness as Global Capacity Group Inc., delivers telecomintegration services to systems integrators, telecommunicationscompanies, and enterprise customers worldwide. It provides anintegrated supply chain management system that streamlines andaccelerates the process of designing, building, and managingcustomized communications networks. The company also providesconnectivity services for network integrators who bundletelecommunication solutions to enterprise customers; offers globalpricing and quotation software and management services for datacommunications; and assists customers to reduce connectivity costsand attain understanding and control of their deployedcommunications network.

Capital Growth Systems, Inc., posted a $7.2 million net loss on$8.7 million in revenues for the three months ended June 30, 2008. The company said revenues increased 107% from $4.2 million for thesame period in 2007. This increase is primarily due to therecognition of revenue in the second quarter of 2008 in connectionwith a significant new contract in its Optimization Solutions lineof business.

The company disclosed $37.7 million in total assets, $59.1 millionin total liabilities, and $21.3 million in shareholders' deficitas of June 30, 2008.

The negative rating outlook reflects the possibility that Cascades' ratings could be downgraded given the company's weakened financial performance and potential for a deterioration in the company's liquidity position. Cascades maintains a strong reliance on its revolving credit facilities and although the company is in compliance with its financial covenants, the interest coverage covenant is tight and will require sustained financial performance to remain in compliance over the short term and may require improved financial performance when the interest coverage covenant steps up in June 2009.

In addition, the company's C$100 million unsecured revolving credit facility matures in June 2009 and would reduce the liquidity source if not refinanced. Cascades credit protection metrics have deteriorated over the past 12 months as the company faced higher input costs and a strong Canadian dollar.

In addition, the company's boxboard segment has underperformed relative to Cascades' other business segments and is currently undergoing a major restructuring. Moody's anticipates that the company will benefit in the short term with the recent weakening of the Canadian dollar and drop in energy and recycled fiber costs.

Cascades' Ba2 corporate family rating reflects the diversity derived from its containerboard, boxboard, specialty packaging and tissue businesses, the relative stable margins from these products and the company's vertically integrated operations. Offsetting these strengths are the company's weak credit protection metrics for the rating, lack of geographic diversification, exposure to the strong Canadian dollar, volatile input costs and the company's adequate, but weakening liquidity position. Credit challenges also include the company's tendency to conduct relatively small, but debt financed acquisitions.

The SGL-3 liquidity rating indicates that Cascades has an adequate liquidity profile supported by the availability under its credit facilities and expectations of modest improvement of cash flow generation in the next four quarters. The company is in compliance with its financial covenants and in May 2008 amended its credit facility to maintain the current financial covenant levels until June 30, 2009. The headroom on the company's interest coverage covenant is modest, and improved financial performance may be required when the interest coverage covenant steps up in June 2009.

In addition to the company's $750 million secured revolving credit facility that matures in 2011, the company maintains a C$100 million unsecured revolving credit facility that matures in June 2009 and if not refinanced, may weaken the company's liquidity position. Moody's considers Cascades' alternative liquidity potential to be moderately strong due to the ability to sell certain assets including the 34% interest in Boralex and the 31% interest in Reno De Medici to augment liquidity.

Moody's last rating action on Cascades was on July 11, 2007 when Moody's assigned a Ba3 rating to Cascades' $100 million senior unsecured revolver and affirmed the company's existing ratings.

Assignments:

Issuer: Cascades Inc.

-- Speculative Grade Liquidity Rating, Assigned SGL-3

Outlook Actions:

Issuer: Cascades Inc.

-- Outlook, Changed To Negative From Stable

Issuer: Norampac Inc.

-- Outlook, Changed To No Outlook From Stable

Headquartered in Kingsey Falls, Quebec, Cascades is a predominantly North American producer of recycled boxboard, containerboard, and specialty packaging and tissue products.

C-BASS: Poor Collateral Performance Cues Moody's to Cut Ratings ---------------------------------------------------------------Moody's Investors Service has downgraded 12 certificates from two transactions issued by C-Bass Mortgage Loan Asset-Backed Certificates. The transactions are backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were low compared to the current projected loss numbers at the previous rating levels.

The actions take into account the continued and worsening performance of transactions backed by closed-end-second collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default.

CF HOSPITALITY: Obtains Final Approval for $8.2MM Financing-----------------------------------------------------------Bill Rochelle of Bloomberg News reports that the U.S. Bankruptcy Court for the Middle District of Florida gave final approval to CF Hospitality, Inc., and affiliate SF Hotels, Inc., to obtain $8.2 million in financing.

The new loan, according to the report, is secured, although subordinate to existing mortgages.

The Court, according to the report, denied a motion by secured lender Gramercy Investment Trust to dismiss the case in June 2008. The Court also also removed a state court receiver who had been appointed in the lender's foreclosure action that was halted by the Chapter 11 filing.

Apopka, Florida-based CF Hospitality, Inc., owns two hotels, one in Orlando and another in Miami. The Company and a subsidiary filed for Chapter 11 bankruptcy protection on May 1, 2008 (Bankr. M.D. Fla. Lead Case No. 08-03518). David R. McFarlin, Esq., and Frank M. Wolff, Esq., at Wolff, Hill, McFarlin & Herron, P.A., represent the Debtors in their restructuring efforts. In its filing, the Lead Debtor listed estimated assets between $10 million and $50 million and estimated debts between $10 million and $50 million.

The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, prime mortgage loans. These reviews are triggered by higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to currently available credit enhancement levels. The actions are a result of Moody's revised expected losses on the Jumbo sector announced on September 18, 2008, and are part of an on-going review process.

Moody's final rating actions in coming months will vary based on current ratings, level of credit enhancement, pool-specific historical performance, quarter of origination, collateral characteristics and other qualitative factors. For deals where the weakest senior Aaa tranche was identified as needing to go under review, Moody's has placed on review for possible downgrade all senior Aaa tranches. Moody's analysis during the review period will take into account credit enhancement provided by seniority, time tranching, and other structural features within the Aaa waterfalls.

Complete rating actions are:

Issuer: Chase Mortgage Finance Trust 2006-S1

-- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-6, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. A-7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

Issuer: Chase Mortgage Finance Trust 2007-S6

-- Cl. 1-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. M, Placed on Review for Possible Downgrade, currently Aa2

-- Cl. B-1, Placed on Review for Possible Downgrade, currently A2

-- Cl. B-2, Placed on Review for Possible Downgrade, currently Baa2

-- Cl. B-3, Placed on Review for Possible Downgrade, currently Ba2

-- Cl. B-4, Placed on Review for Possible Downgrade, currently B2

Issuer: Chase Mortgage Finance Trust Series 2006-S2

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-R, Placed on Review for Possible Downgrade, currently Aaa

Issuer: Chase Mortgage Finance Trust Series 2006-S3

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aa1

Issuer: Chase Mortgage Finance Trust Series 2006-S4

-- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-20, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-21, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-22, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-23, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-X, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. A-R, Placed on Review for Possible Downgrade, currently Aaa

Issuer: Chase Mortgage Finance Trust Series 2007-A3

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 1-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A20, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A2, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 2-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A20, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A21, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A22, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A23, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A2, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 3-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A20, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A21, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. M, Placed on Review for Possible Downgrade, currently Aa2

-- Cl. B-1, Placed on Review for Possible Downgrade, currently A2

-- Cl. B-2, Placed on Review for Possible Downgrade, currently Baa2

-- Cl. B-3, Placed on Review for Possible Downgrade, currently Ba2

-- Cl. B-4, Placed on Review for Possible Downgrade, currently B2

Issuer: Chase Mortgage Finance Trust Series 2007-S1

-- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-X, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aa1

Issuer: Chase Mortgage Finance Trust Series 2007-S2

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aa1

Issuer: Chase Mortgage Finance Trust Series 2007-S3

-- Cl. 1-A-1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-6, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-9, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-20, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A-21, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-M, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa1

Issuer: Chase Mortgage Finance Trust Series 2007-S4

-- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-3, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-5, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-7, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-8, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-9, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. A-10, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-11, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-12, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-13, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-14, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-15, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-16, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-17, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-18, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-19, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-P, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. A-X, Placed on Review for Possible Downgrade, currently Aaa

Issuer: Chase Mortgage Finance Trust Series 2007-S5

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa

Issuer: Chase Mortgage Finance Trust, Series 2006-A1

-- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 1-A4, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 1-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A2, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A3, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 2-A4, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 2-AX, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 3-A2, Placed on Review for Possible Downgrade, currently Aa1

-- Cl. 4-A1, Placed on Review for Possible Downgrade, currently Aaa

-- Cl. 4-A2, Placed on Review for Possible Downgrade, currently Aa1

CHEROKEE INTERNATIONAL: To Merge with Lineage Power Holdings------------------------------------------------------------Cherokee International Corporation disclosed in a Securities and Exchange Commission filing that it has entered into a definitive merger agreement with Lineage Power Holdings, Inc., under which Lineage will acquire all of the outstanding shares of the company.

Under the terms of the agreement, stockholders of Cherokee International will receive $3.20 per share of common stock held, in an all cash transaction, representing an aggregate enterprise value of approximately $105 million. The transaction has been unanimously approved by the board of directors of Cherokee International, and certain stockholders have agreed to vote their Cherokee International shares in favor of the transaction.

"We believe the sale of Cherokee to Lineage will add value and scale for our customers," said Jeffrey Frank, Cherokee's President and Chief Executive Officer. "Over the past 30 years, Cherokee has earned a great reputation for our strong engineering team, manufacturing, quality and responsiveness, all of which come down to our outstanding employees and our focus on the customer. Going forward, our employees and customers will be well served by becoming part of Lineage and The Gores Group portfolio of companies. Gores has a stellar reputation for customer satisfaction and the proven ability to profitably grow its businesses."

According to Ryan Wald, Managing Director of The Gores Group, Cherokee will become a division of Lineage and will continue to be a leader in the custom power solutions marketplace.

"We are impressed by the accomplishments that Jeff and his management team have made to date regarding Cherokee's North American and Asian operations," said Mr. Wald. "We look forward to partnering with them in those regions to create a more compelling value proposition for our combined customers."

The transaction is subject to the approval of Cherokee International's stockholders and to regulatory approvals. The companies anticipate that the transaction will be completed in the fourth calendar quarter of 2008.

Based in Tustin, California, Cherokee International Corp.(NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer and manufacturer of a range of switch mode power supplies fororiginal equipment manufacturers in the telecommunications,networking, high-end workstations and other electronic equipmentindustries. The company has offices and manufacturing plants inTustin and Irvine, California, Wavre, Belgium, Bombay, India,Guadalajara, Mexico, and Penang, Malaysia.

Going Concern Doubt

Mayer Hoffman McCann P.C. in Orange County, California, expressed substantial doubt about the company's ability to continue as a going concern after auditing the consolidated financial statements of Cherokee International Corporation and subsidiaries as of Dec. 30, 2007, and Dec. 31, 2006. The company's management anticipates that there will be insufficient cash balances available to repay the outstanding debt at itsmaturity.

On Nov. 1, 2008, the $46.6 million aggregate principal amount outstanding under the company's 5.25% Senior Notes will become due and payable. The company does not expect to have sufficient cash available at the time of maturity to repay this indebtedness and are currently working on a variety of possible alternatives to satisfy this obligation. The company also cannot be certain that it will have sufficient assets or cash flow available to support refinancing these notes at current market rates or on terms that are satisfactory to the company. If the company is unable to refinance on terms satisfactory to it, it may be forced to refinance on terms that are materially less favorable, seek funds through other means such as a sale of some of assets, or otherwise significantly alter its operating plan, any of which could have a material adverse effect on its business, financial condition and results of operation. These circumstances create substantial doubt about the company's ability to continue as a going concern.

CHOCTAW RESORT: Moody's Chips CF and PD Ratings to B1 from B3-------------------------------------------------------------Moody's Investors Service downgraded Choctaw Resort Development Enterprise's corporate family rating, probability of default rating and debt ratings to B1 from Ba3. The ratings remain under review for possible downgrade. In Moody's opinion, the economic and competitive challenges appear more significant than expected and are likely to pressure earnings, thus increasing the likelihood of a financial covenant breach in the short term.

During the review period, Moody's will assess the enterprise's plan to address the challenging economic and competitive headwinds, its initiatives to stabilize performance and its credit protection measures, and its ability to obtain a covenant amendment if needed. More positively, the review will also consider the enterprise's ability to maintain its relatively low financial leverage and adequate interest coverage.

On August 20, 2008, Moody's downgraded Choctaw's corporate family rating to Ba3 from Ba2 and changed the outlook to negative.

Ratings downgraded to B1 and kept under review for possible further downgrade:

Choctaw Resort is a component unit of the Mississippi Band of Choctaw Indians, which was created by the Tribe in October 1999 to run its gaming operations. It owns and operates in central Mississippi the Silver Star Hotel and Casino and the Golden Moon Hotel and Casino, which commenced operations in 1994 and 2002, respectively.

CROSS ATLANTIC: Court to Rule on Case Dismissal Bid in Two Weeks----------------------------------------------------------------Judge Terry Myers of the U.S. Bankruptcy Court for the District of Idaho said Friday he'll decide within two weeks whether to dismiss the bankruptcy cases of two real estate companies that own a majority of troubled Tamarack Resort LLC, a move that could help clear the way for investment bank Credit Suisse to gain control of the resort, the Associated Press reports.

Attorneys for Jean-Pierre Boespflug, Tamarack's chief executive officer who owns 50.6% of the resort, and Alfredo Miguel Afif, its chairman who owns 26%; and for Credit Suisse participated in a three-hour court hearing.

The report says Judge Myers would be rendered a decision by October 16.

AP notes that Credit Suisse filed a lawsuit in March after Messrs. Boespflug's and Miguel's companies didn't fulfill their agreement to cover Tamarack's debt obligations when the resort defaulted on a $260 million syndicated loan. The bank now contends Mr. Boespflug and Mr. Miguel inappropriately sought bankruptcy protection for their companies to buy time for the resort to find a new investor.

Friday's hearing came a day after AP reported Mr. Boespflug planned to inject enough of his personal funding to open skiing in December -- but wouldn't commit to keeping the resort 90 miles north of Boise afloat until season's end without additional money from new investors.

According to AP, construction on Tamarack's Village Plaza centerpiece is at a standstill, with at least $56 million needed to finish the project. Bank of America and Sterling Bank plan separate foreclosure auctions for the resort's conference center and employee housing after Tamarack fell behind on payments.

In Friday's hearing, AP says, Credit Suisse argued that when Mr. Boespflug's Cross Atlantic Real Estate LLC and Mr. Miguel's VPG Investments filed for Chapter 11 bankruptcy protection Feb. 15, they sought only to buy time. They acted in bad faith by seeking not to reorganize their own companies, but rather to buy time for Tamarack to restructure and to keep the bank from replacing resort management, Credit Suisse's lawyers said.

"It's crystal clear they filed the case to stop us from executing on our state law rights," said Joel Samuels, an attorney for the Zurich, Switzerland-based bank, according to the report. "They filed to use bankruptcy as a parking space."

AP says Justin May, Esq., Mr. Boespflug's lawyer, countered that his client's continued personal financial commitment to Tamarack after seeking bankruptcy protection was ample evidence that he was sincere about protecting not only his own stake, but also the value of Tamarack Resort.

Mr. Boespflug has made $11 million in loans to the resort since April, with a 15% return to be paid to him upon a successful refinancing, AP notes.

In a separate foreclosure lawsuit filed by Credit Suisse against Tamarack in Idaho's 4th District Court, the bank in late September submitted a plan for a $10 million loan to a proposed receiver it's asking the court to appoint to assume resort management, according to court documents obtained by AP.

According to the documents, the $10 million would fund a 90-day budget, including winterization of the Village Plaza and the cost of starting up the ski hill. A new hearing on the proposed receivership, which a judge denied once in July, is planned for Oct. 15 in Cascade, Idaho.

About Tamarack Resort

Tamarack Resort LLC -- http://www.tamarackidaho.com/-- is the first all-season resort to open in the U.S. in 24 years and hasreceived national attention for its world-class mountain forskiing, hiking and mountain biking; Osprey Meadows, a Robert TrentJones, Jr., signature golf course; and beautiful Lake Cascade,suitable for swimming, sailing, fishing, sea kayaking, andboating. A key element of the Tamarack community is The Club atTamarack for homeowners, their families and guests. Nestled inIdaho's Payette River Mountains, Tamarack is a luxury boutiqueresort with a variety of lodging options all within walkingdistance of the four-season amenities. It opened in 2004 afterAlfredo Miguel Afif and Jean-Pierre Boespflug took over acontroversial and long-stalled ski resort project.

DALTON CDO: Moody's Junks Ratings on Four Classes of Notes----------------------------------------------------------Moody's Investors Service has downgraded and left on review for possible downgrade the notes issued by Dalton CDO Ltd.:

According to Moody's, these rating actions are as a result of the deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities.

DRIGGS FARMS: Court Sets October 22 Claims Bar Date ---------------------------------------------------The Hon. Robert E. Grant of the U.S. Bankruptcy Court for the Northern District of Indiana set, at the behest of the Unsecured Creditors' Committee of Driggs Farms of Indiana, Inc., the claims bar date for Oct. 22, 2008.

Rothberg Logan & Warsco LLP, the counsel for the Committee, told the Court that the Committee has received inquiries fromseveral creditors with respect to the bar date and the procedure for submitting claims for goods provided to the Debtor within the 20 days before the Chapter 11 filing. The creditors asked whether they should file proofs of claim or submit a separate application for payment of an administrative claim. The creditors also asked if the Oct. 22, 2008, general claims deadline also apply to administrative claims. During a meeting on Aug. 28, 2008, the Committee asked that Rothberg Logan seek a court order clarifying these issues for the benefit of creditors.

The Committee asked the Court to establish Oct. 22, 2008, as the bar date for filing administrative claims and that the procedure for submitting those claims will be by Proof of Claim, indicating that the claimant is seeking administrative claim status for all or a portion of the claim, along with accompanying documentation identifying the underlying goods that were supplied.

The court held a hearing on the Committee's request at Fort Wayne, Indiana, on Sept. 24, 2008, with:

-- Daniel Skekloff, the counsel for debtor;

-- Mark Warsco, the counsel for the Unsecured Creditors' Committee;

-- Edmund Kos, the counsel for Pullman Sugar LLC;

-- Thomas Yoder, the counsel for Gavilon LLC; and

-- Ellen Triebold, the counsel for the U.S. Trustee.

Based in Decatur, Ind., Driggs Farms of Indiana Inc. manufactures frozen desserts & novelties and dairy products. The company filed for Chapter 11 protection on June 20, 2008 (N.D. Indiana Case No. 08-11955). Daniel J. Skekloff, Esq., at Skekloff, Adelsperger & Kleven, LLP, represents the Debtor in its restructuring efforts. Rothberg Logan & Warsco LLP is the Committee of Unsecured Creditors' proposed counsel. When the Debtor filed for protection from its creditors, it listed estimated assets of $10 million to $50 million and debts of $10 million to $50 million.

ENERLUME ENERGY: Gilbert Rossomando Quits as Board Member---------------------------------------------------------EnerLume Energy Management Corp. disclosed in a Securities and Exchange Commission filing that Gilbert Rossomando has resigned as a member of the Board of Directors. Mr. Rossomando resigned to pursue personal business interests and there is no known disagreement between the Company and Mr. Rossomando on any matter relating to the Company's operations, policies or practices.

New York-based Mahoney Cohen & Company, CPA, P.C., raisedsubstantial doubt about the ability of EnerLume Energy ManagementCorp., formerly Host America Corporation, to continue as a goingconcern after it audited the company's financial statements forthe year ended June 30, 2008.

The auditor pointed out in its report that EnerLume Energy hassuffered recurring losses from continuing operations, has negativecash flows from operations, has a working capital and astockholders' deficiency at June 30, 2008 and is currentlyinvolved in significant litigations that can have an adverseeffect on the company's operations.

The company incurred net losses for the years ended June 30, 2008,and 2007 respectively, and had a working capital deficiency andaccumulated deficit of $3,210,995 and $5,426,180, respectively, asof June 30, 2008. The company had $4,100,498 and $5,078,769 ofcash that was used in operating activities of continuingoperations during 2008 and 2007, respectively.

The company posted a net loss of $7,420,059 on net revenues of$6,198,175 for the year ended June 30, 2008, as compared with anet loss of $6,072,916 on net revenues of $7,194,392 in the prioryear.

At June 30, 2008, the company's balance sheet showed $2,013,366 intotal assets and $7,439,546 in total liabilities, resulting in a$5,426,180 stockholders' deficit.

The company's consolidated balance sheet at June 30, 2008, alsoshowed strained liquidity with $1,574,287 in total current assetsavailable to pay $4,785,282 in total current liabilities.

FORD MOTOR: Volvo Unit Will Lay Off 13% of Work Force-----------------------------------------------------Christop Rauwald and Ola Kinnander at The Wall Street Journal report that Ford Motor Co. unit Volvo Cars said on Wednesday that it will cut 13%, or 3,300 of its work force, due to declining global demand.

According to WSJ, most of the layoffs -- about 2,700 -- will be made in Sweden. Volvo said it will also terminate contracts with 700 consultants world-wide, WSJ says.

Volvo said that, including staff cuts disclosed in June, a total of 6,000 people of the firm's 24,500 workers will lose their jobs, WSJ relates. About 1,200 of the workers to be laid off are consultants, the report states.

WSJ quoted Volvo's CEO Stephen Odell as saying, "These actions are necessary to create a new and sustainable Volvo Car Corporation--a company with more focused operations and structure. The unstable economic environment has resulted in a very unpredictable situation, and the downturn in the global car industry is more drastic than expected."

The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil.

* * *

As reported in the Troubled Company Reporter on Aug. 5, 2008,Fitch Ratings has downgraded the issuer default rating of FordMotor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts.

FORD MOTOR: German Unit to Cut Production, Lay Off 204 Workers--------------------------------------------------------------The Associated Press reports that Ford Motor Co.'s German unit said on Tuesday it will cut production and lay off about 204 part-time workers at its Saarlouis plant.

According to The AP, the plant has about 6,500 workers. Ford Motor produces the Focus, C-Max, and Cougar models, at that plant, the report says, citing Ford Motor spokesperson Bernd Meyer said.

Ford Motor said that the Cologne plant in the northwest of Germany will continue production without changes, The AP states.

In its U.K. operations, Ford Motor has introduced a four-day week work at the Southampton plant, which makes Transits, The Guardian reports. About 970 workers at Ford Motor is also implementing short-time working at its stamping plant at Dagenham, The Guardian relates.

The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil.

* * *

As reported in the Troubled Company Reporter on Aug. 5, 2008,Fitch Ratings has downgraded the issuer default rating of FordMotor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects: the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and escalating commodity costs that will remain a significant offset to cost reduction efforts.

FREEDOM COMMS: Likely Covenant Breach Cues Moody's Ratings Cut--------------------------------------------------------------Moody's Investors Service downgraded Freedom Communications Inc.'s Probability of Default rating to Caa2 from Caa1, Corporate Family rating to Caa1 from B3 and the senior secured credit facility to Caa1 from B3. The downgrade follows the company's announcement that it may be in violation of its credit facility maintenance financial covenants as of September 30, 2008 and that it has fully drawn on its $300 million revolving credit facility. All ratings remain under review for possible downgrade.

The downgrades reflect heightened risk of a near term default due to the potential for a covenant violation, the revolver drawdown, and tight bank lending conditions, and Moody's expectation that economic challenges will further depress advertising spending into 2009. Moody's anticipates that Freedom has a reasonably good chance of obtaining an amendment or waiver, but default risk will likely remain elevated if amendments to the credit facility financial maintenance covenants and debt amortization schedule do not provide sufficient flexibility to withstand the advertising slowdown.

Moody's downgraded and placed all of Freedom's ratings under review for possible downgrade on September 5, 2008. The continuing rating review will consider the probability that Freedom will succeed in obtaining a waiver or amendment to its credit facility, and the company's ability to stabilize the level of its sales and free cash flow and improve a currently very tight liquidity profile if a waiver or amendment is received.

Freedom Communications is a newspaper and television broadcasting operator based in Irvine, California. The company recorded total revenues of $798 million for the LTM period ended June 30, 2008.

FREESTAR TECHNOLOGY: Delays Filing of Annual Report on Form 10-K-----------------------------------------------------------------FreeStar Technology Corp. disclosed in a Securities and Exchange Commission filing that it was unable to file its Annual Report on Form 10-K by Sept. 29, 2008, as it was unable to compile the requisite financial data and other narrative information necessary to enable it to complete the report without unreasonable effort and expense.

Based in Dublin, Ireland, FreeStar Technology Corp. (OTC BB: FSRT)-- http://www.freestartech.com/-- provides electronic payment processing services, including credit and debit card transactionprocessing, point-of-sale related software applications and othervalue-added services. The company was incorporated in the Stateof Nevada. The company also has offices in Helsinki, Finland;Stockholm, Sweden; Geneva, Switzerland; and Santo Domingo, theDominican Republic.

Going Concern Doubt

New York-based RBSM LLP expressed substantial doubt about FreeStarTechnology Corp.'s ability to continue as a going concern afterauditing the company's consolidated financial statements for theyear ended June 30, 2007. The auditing firm said the company isexperiencing difficulty in generating sufficient cash flow to meetits obligations and sustain its operations.

As of March 31, 2008, the company had total current assets of $1,855,670 and total current liabilities of $4,097,282, resulting in a working capital deficiency of ($2,241,612). The company had cash and cash equivalents of $214,150 at March 31, 2008, and an accumulated deficit of $87,136,832.

GEORGIA GULF: Inks 4th Supplemental Indenture with USBNA --------------------------------------------------------Georgia Gulf Corp. disclosed in a Securities and Exchange Commission filing that it entered into a fourth supplemental indenture to the indenture dated Dec. 3, 2003, with its subsidiary guarantors, and U.S. Bank National Association -- as successor to SunTrust Bank -- as trustee, as amended, on Sept. 29, 2008.

The amendments contained in the Fourth Supplemental Indenture were approved by the holders of a majority of the 7-1/8% senior notes due 2013 through a consent solicitation as contemplated by the settlement agreement between the Company and certain holders of the notes.

The Fourth Supplemental Indenture amended certain covenants contained in the indenture governing the notes to conform those covenants to the covenants contained in the indenture for the Company's other senior notes.

The amendments, among other things:

-- added to the events of default under the indenture, the Company's failure to comply with the covenants regarding restricted payments and incurrence of indebtedness and issuance of preferred stock contained in the indenture, dated as of October 3, 2006, in respect of the Company's 9.5% senior notes due 2014 and deleted from the events of default under the indenture, the Company's failure to comply with the covenants regarding limitation on indebtedness and limitation on restricted payments;

-- amended the merger and consolidation covenant which requires that the Company's successor in such a transaction be able to incur additional debt to refer to the debt incurrence covenant of the 2006 indenture, thereby permitting the Company to engage in such a transaction that could potentially result in a successor with greater indebtedness than was previously allowed under the indenture; and

-- amended other provisions of the indenture necessary to give effect to other amendments.

In addition to agreeing to the Fourth Supplemental Indenture, the consenting holders also agreed to waive any defaults or events of default under the indenture that existed as of the effective date of the amendments, subject to certain exceptions.

As reported in the Troubled company Reporter on May 12, 2008,Standard & Poor's Ratings Services lowered its ratings on GeorgiaGulf Corp. by one notch, including its corporate credit rating to'CCC+' from 'B-'. The outlook is negative.

The Troubled Company Reporter reported on July 17, 2008, thatGeorgia Gulf Corporation entered into a settlement agreement withcertain holders of its 7-1/8% senior notes due 2013 that sent anotice of default on June 6, 2008. The company has agreed to pay$1.4 million of the legal fees of the signing holders.

GOODY'S FAMILY: Court Confirms 2nd Amended Chapter 11 Plan----------------------------------------------------------The Hon. Christopher S. Sontchi of the United States BankruptcyCourt for the District of Delaware confirmed on Oct. 8, the second amended joint Chapter 11 plan of reorganization dated Oct. 6, 2008, filed by Goody's Family Clothing Inc. and its debtor-affiliates, and its Official Committee of Unsecured Creditors. Judge Sontchi held that the proponents' joint plan satisfied the requirements of Section 1129 of the Bankruptcy Code.

The plan is expected to become effective in 10 days after the confirmation.

"Goody's has a solid 55-year heritage and our Company has madegreat progress over the past few months," Paul White, Goody'sChief Executive Officer, stated. "In particular, we have createda stronger and more nimble organization that is more effectivelypositioned to serve our very loyal customers," Mr. White said.

"[Wednes]day's decision will allow us to move our business forward with renewed vigor and we look forward to the opportunities that lie ahead," he continued.

Several creditors had protested against the confirmation of the proponents' joint plan including, among other things, The MissouriDepartment of Revenue, Texas Comptroller of Public Accounts andTexas Workforce Commission, and Libby Westmark Enterprises LLC andLibby Cross Station Enterprises LLC. MDOR, et al., argued thatthe plan is defective citing that it lack specificity regardingpayment of priority tax claims.

The amended plan will implement a compromise and settlement amongthe Debtors, the prepetition lender, the prepetition juniorlenders and the creditors committee pursuant to Bankruptcy Rule9019 and Section 1123(b)(3) of the bankruptcy code. Under theplan, the Debtor will continue in operation achieving theobjectives of Chapter 11 for the benefit of their creditors.

On the Plan's effective date, the Debtors will waive all oftheir respective rights and interest in avoidance action that theDebtors may hold against any person other than the permittedavoidance actions commenced before the plan's confirmation date.

The Plan will enable the Debtors to obtain an exit facility tosatisfy the DIP facilities claims, support payments required to bepaid under the plan, pay transaction cost, fund working capitaland other general corporate purposes of the reorganized Debtorsupon their emergence.

As reported in the Troubled Company Reporter on July 18, 2008, theCourt authorized the Debtors to obtain, on a final basis, up to$210,000,000 in postpetition financing from a consortium offinancial institution including:

Under the plan, allowed administrative claims, 503(b)(9) claims,priority tax claims, and non-tax priority claims will be paid infull, unless otherwise agreed by the holders of the claims.

Holders of Class 2 and 4 claims may be reinstated on originalterms, satisfied on deferred payment terms, or paid in full on theplan's effective date, at the Debtors' option.

The trance b term loan agreement claims held by GMM Capital LLCand PGDYS Lending LLC, an affiliates of Prentice CapitalManagement LP, will be treated as follows:

i) GMM will receive new common stock if GMM makes the GMM equity election or treatment of its allowed tranche B loan agreement claim as a Class8 general unsecured claim; and

ii) PGDYS Lending will receive new common stock.

Moreover, PGDYS Lending has agreed to waive its rights toparticipate in the Class8 general unsecured claim distribution onaccount of the unsecured claim arising with respect to its allowedtrance B loan agreement claims.

Holders of Class 8 general unsecured claims will receive a prorate share of (i) the general unsecured creditor cash, and (ii)the general unsecured creditor note.

Class 9, 11 and 12 will not receive any distribution under theplan. Holders of Class 10 intercompany claims will be either:

i) reinstated, in full or in party, or

ii) canceled and discharge, in full or in part, in which case such discharged and satisfied portion will be eliminated and the holder of Class 10 claims will not receive any distribution under the plan.

Class 13 equity interest will be canceled.

A full-text copy of the proponents' Second Amended Joint Chapter 11 Plan of Reorganization is available for free at:

Headquartered in Knoxville, Tennessee, Goody's Family ClothingInc. -- http://www.shopgoodys.com/-- operates chains of clothing stores. The company is owned by Goody's Holdings Inc., a non-debtor entity. As of May 31, 2008, the company operates 355stores in several states with approximately 9,868 personnel ofwhich 170 employees are covered under a collective bargainingagreement. The company and 19 of its affiliates filed for Chapter11 protection on June 9, 2008 (Bankr. D. Del. Lead Case No. 08-11133). Gregg M. Galardi, Esq., and Marion M. Quirk, Esq., atSkadden Arps Slate Meagher & Flom LLP, and Paul G. Jennings, Esq.,at Bass, Berry & Sims PLC, represent the Debtors. The Debtorsselected Logan and Company Inc. as their claims agent.

The U.S. Trustee for Region 3 appointed seven creditors to serveon an Official Committee of Unsecured Creditors. Frederick BrianRosner, Esq., at Duane Morris LLP, and Lawrence C. Gottlieb, Esq.,Cathy Herschopf, Esq., and Jeffrey L. Cohen, Esq., at CooleyGodward Kronish LLP, represent the Committee in these cases.

When the Debtors filed for protection against their creditors,they listed assets and debts of between $100 million and $500million. As of May 3, 2008, the Debtors' records reflected totalassets of $313,000,000 -- book value -- and total debts of$443,000,000.

According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008, Washington Mutual Inc., which was seized by federal regulators on September 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase, and Freddie Mac, which was placed into the conservatorship of the U.S. government on September 8, 2008.

HCA INC: Richard Bracken to Replace Jack Bovender as CEO-------------------------------------------------------- HCA Inc. disclosed in a Securities and Exchange Commission filing that Jack O. Bovender, Jr., Chief Executive Officer and Chairman of the Company, will retire from his position as Chief Executive Officer effective Dec. 31, 2008. Mr. Bovender will remain with the Company as the executive Chairman until Dec. 15, 2009, at which time Mr. Bovender will also resign from the Board of Directors of the Company.

In conjunction with Mr. Bovender's retirement, the Board of Directors appointed Richard M. Bracken as the Chief Executive Officer and President of the Company effective Jan. 1, 2009.

Mr. Bracken has previously served as President and Chief Operating Officer of the Company since January 2002 and Chief Operating Officer of the Company since July 2001. In addition, Mr. Bracken served as President -Western Group of the Company from August 1997 until July 2001. From January 1995 to August 1997, Mr. Bracken served as President of the Pacific Division of the Company. Prior to 1995, Mr. Bracken served in various hospital Chief Executive Officer and Administrator positions with HCA-Hospital Corporation of America.

Mr. Bracken's compensation as Chief Executive Officer and President has not yet been determined.

At June 30, 2008, the company's consolidated balance sheet showed$24.07 billion in total assets and $33.13 billion in totalliabilities, $959.0 million in minority interests, and$163.0 million in equity securities with contingent redemptionrights, resulting in a $10.18 billion shareholders' deficit.

Net income for the second quarter of 2008 totaled $141.0 million,compared to $116.0 million in the prior year's second quarter.Results for the second quarter of 2008 include losses on sales offacilities of $11.0 million compared to gains of $11.0 million inthe second quarter of 2007. Also, second quarter 2008 resultsinclude an impairment of long-lived assets of $9.0 millioncompared to a $24.0 million asset impairment in the same period of2007.

* * *

As reported in the Troubled Company Reporter on May 23, 2008,Fitch Ratings affirmed HCA Inc.'s Issuer Default Rating at 'B';Secured bank credit facility at 'BB/RR1'; and Senior unsecurednotes at 'CCC+/RR6'.

HOMELAND SECURITY: Posts $259,374 Net Loss for Year Ended June 30-----------------------------------------------------------------Homeland Security Capital Corp. posted $259,374 in net losses on $23,154,250 in net revenues for six months ended June 30, 2008, compared with $4,514,609 in net losses on $6,285,087 in net revenues for the same period ended June 30, 2007.

The company's balance sheet as of June 30, 2008, showed $36,197,605 in total assets, $32,960,465 in total liabilities, and $3,067,372 in shareholders' equity.

On May 13, 2008, the Company's Board of Directors approved a change in the Company's fiscal year end from December 31 to June 30. The company's Annual Report on Form 10-K is a transition report and includes information for the six month transitional period from January 1, 2008 to June 30, 2008, reflecting the consolidated results of operations for SEC from March 1, 2008 to June 30, 2008 and the consolidated results of operations of the holding company, Nexus and PMX from January 1, 2008 to June 30, 2008.

Liquidity and Capital Resources

The primary source of financing for the Company since its inception has been through the issuance of common stock, preferred stock and convertible debt. The Company had cash on hand of $3,182,357 at June 30, 2008, $57,521 at Dec. 31, 2007 and $776,139 at Dec. 31, 2006. Its primary needs for cash are to fund its ongoing operations until such time as they begin to generate sufficient cash flow to fund operations and to have cash available to make additional acquisitions of businesses that provide homeland security products and services. While the company believes that it has sufficient cash on hand to satisfy its current operating commitments, it will require significant additional funding in order to make additional acquisitions.

Homeland's consolidated balance sheet at Dec. 31, 2007, showed $9.6 million in total assets and $17.2 million in total liabilities, resulting in a $7.6 million total stockholders' deficit. The company's consolidated balance sheet at March 31, 2008, showed $36.6 million in total assets, $29.7 million in total liabilities, and $3.8 million in total stockholders' equity.

About Homeland Security

Headquartered in Arlington, Virginia, Homeland Security Capital(OTC BB: HOMS) -- http://www.hscapcorp.com/-- is a consolidator in the fragmented homeland security industry. The companyacquires companies that provide security services and products.The company is headed by former Congressman C. Thomas McMillen,who served three consecutive terms in the U.S. House ofRepresentatives from the 4th Congressional District of Maryland.

Its joint venture Polimatrix Inc., with Polimaster, providesnuclear and radiological detection and isotope identificationtechnology used by some government entities and the New YorkPolice Department. The company augmented those operations in 2008when it bought Safety & Ecology Holdings Corp. Safety & Ecologyprovides emergency response, environmental remediation, andconstruction services, specializing in the nuclear industry.

Nexus Technologies Group provides integrated security solutionsfor the corporate and government security markets.

HOSPITAL PARTNERS: Hires Klee Tuchin as Bankruptcy Lawyers----------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware set a hearing for Oct. 20, 2008, on Hospital Partners of Hospital Partners of America, Inc., and its affiliates' request to approve the employment of Klee, Tuchin, Bogdanoff & Stem LLP as bankruptcy counsel, nunc pro tunc to Sept. 24, 2008.

The hearing will be held at 10:00 a.m. at the U.S. Bankruptcy Court, 824 Market Street, 6th Floor, Courtroom #1, Wilmington, Delaware.

The Firm will render these services to the Debtors:

-- providing legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their business and management of their properties;

The Debtors assured the Court of the Firm's disinterestedness, and that the Firm does not hold or represent any interest adverse to the Debtors' estate.

Objections on the Firm's employment as bankruptcy cousnel must be filed to the Court by Oct. 15, 2008.

Headquartered in Charlotte, North Carolina, Hospital Partners of America, Inc. -- http://www.hospitalpartners.com/-- develops and manages hospitals. The company and its affiliates filed for Chapter 11 bankruptcy protection on Sept. 24, 2008 (Bankr. D. Del. Case No. 08-12180). Kurtzman Carson Consultants LLC is the Claims Agent. Moore & Van Allen PLLC is the Debtors' corporate and litigation counsel. The Debtors listed assets of $100 million to $500 million and debts of $100 million to $500 million.

HOSPITAL PARTNERS: Taps Pachulski as Bankruptcy Co-counsel----------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware set a hearing for Oct. 20, 2008, on Hospital Partners of Hospital Partners of America, Inc., and its affiliates' request to approve the employment of Pachulski Stang Ziehl & Jones LLP as co-counsel, nunc pro tunc to Sept. 24, 2008.

The hearing will be held at 10:00 a.m. at the U.S. Bankruptcy Court, 824 Market Street, 6th Floor, Courtroom #1, Wilmington, Delaware.

The Firm will render these services to the Debtors:

-- providing legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their business and management of their properties;

The Debtors told the Court that the Firm's services will complement and not duplicate the services of Klee, Tuchin, Bogdanoff & Stern LLP, whom the Debtors want to retain as bankruptcy counsel.

The Debtors assured the Court of the Firm's disinterestedness, and that the Firm does not hold or represent any interest adverse to the Debtors' estate.

Headquartered in Charlotte, North Carolina, Hospital Partners of America, Inc. -- http://www.hospitalpartners.com/-- develops and manages hospitals. The company and its affiliates filed for Chapter 11 bankruptcy protection on Sept. 24, 2008 (Bankr. D. Del. Case No. 08-12180). Kurtzman Carson Consultants LLC is the Claims Agent. Moore & Van Allen PLLC is the Debtors' corporate and litigation counsel. The Debtors listed assets of $100 million to $500 million and debts of $100 million to $500 million.

HOSPITAL PARTNERS: Taps Moore & Van Allen as Corporate Counsel--------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware set a hearing for Oct. 20, 2008, on Hospital Partners of Hospital Partners of America, Inc., and its affiliates' request to approve the employment of Moore & Van Allen PLLC as corporate and litigation counsel, nunc pro tunc to Sept. 24, 2008.

The hearing will be held at 10:00 a.m. at the U.S. Bankruptcy Court, 824 Market Street, 6th Floor, Courtroom #1, Wilmington, Delaware.

-- appearing in Court on behalf of the Debtors, as may be appropriate, and in order to protect the interests of the Debtors; and

-- performing other legal services related to corporate, transaction, real estate, employee benefits, ERISA, and litigation matters for the Debtors that may be necessary and proper in these proceedings.

The Debtors told the Court that the Firm will work closely with Klee, Tuchin, Bogdanoff & Stem LLP -- the Debtors' proposed bankruptcy counsel -- and Pachulski Stang Ziehl & Jones LLP, the proposed co-counsel for the Debtors, to ensure that there is no unnecessary duplication of services performed for or charged to the Debtors' estates.

The Debtors assured the Court of the Firm's disinterestedness, and that the Firm does not hold or represent any interest adverse to the Debtors' estate.

Headquartered in Charlotte, North Carolina, Hospital Partners of America, Inc. -- http://www.hospitalpartners.com/-- develops and manages hospitals. The company and its affiliates filed for Chapter 11 bankruptcy protection on Sept. 24, 2008 (Bankr. D. Del. Case No. 08-12180). Kurtzman Carson Consultants LLC is the Claims Agent. Moore & Van Allen PLLC is the Debtors' corporate and litigation counsel. The Debtors listed assets of $100 million to $500 million and debts of $100 million to $500 million.

The company said that the audit reports issued by KPMG on its financial statements as of and for the years ended Dec. 31, 2006 and 2007 did not contain any adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle, except as follows:

KPMG's report on the financial statements of the Company as of and for the years ended Dec. 31, 2006 and 2007 contained a separate paragraph stating that "the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty."

During the years ended Dec. 31, 2006 and 2007, and the subsequent interim period through Sept. 23, 2008, there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to the satisfaction of KPMG, would have caused them to make reference to the subject matter of the disagreement in connection with their opinion. During the years ended Dec. 31, 2006 and 2007, and the subsequent interim period through September 23, 2008, there were no reportable events, except for a material weakness related to maintaining effective policies and procedures to ensure a sufficiently detailed management review of the preliminary financial statements. The Company believes that this material weakness was remediated as of June 30, 2008, as described in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.

KPMG Letter

KPMG LLP confirmed that it was previously principal accountants for Ibis Technology Corporation and, under the date of May 22, 2008, it reported on the financial statements of Ibis Technology Corporation as of and for the years ended December 31, 2006 and 2007.

KPMG agree with Ibis' statements except that it is not in a position to agree with the statement in the third paragraph relating to the Company's belief that the material weakness was remediated as of June 30, 2008.

Going Concern Doubt

As reported in the Troubled Company Reporter on June 9, 2008, KPMGLLP expressed substantial doubt about Ibis TechnologyCorporation's ability to continue as a going concern afterauditing the company's financial statements for the year endedDec. 31, 2007. The auditing firm pointed to the company'srecurring losses from operations.

Ibis Technology Corp. reported a net loss of $1,446,740 on total net sales and revenue of $265,130 for the second quarter endedJune 30, 2008, compared with a net loss of $1,284,010 on totalnet sales and revenue of $94,493 in the corresponding period in2007.

At June 30, 2008, the company's consolidated balance sheet showed$9,762,833 million in total assets, $731,591 in total liabilities, and $9,031,242 in total stockholders' equity. The company had accumulated deficit of $90,170,387.

About Ibis Technology

Ibis Technology Corporation (Nasdaq GM: IBIS) --http://www.ibis.com/-- is a provider of oxygen implanters for the production of SIMOX-SOI (Separation-by-Implantation-of-OxygenSilicon-On-Insulator) wafers for the worldwide semiconductorindustry. Headquartered in Danvers, Massachusetts, IbisTechnology is traded on Nasdaq under the symbol IBIS.

IDEAEDGE INC: Names Mark Sandson to Board of Directors------------------------------------------------------IdeaEdge Inc. disclosed in a Securities and Exchange Commission filing that its Board of Directors has appointed Mark L. Sandson as a Director.

Since May 2001, Mr. Sandson is the Managing Director of Core Capital Group, a consulting firm that provides merger and acquisition and strategic advisory services. From October 1999 to April 2001, Mr. Sandson was a Vice President with CompuCom Systems, Inc., an information technology products and services company. From August 1990 to September 1999, Mr. Sandson served as a consultant to the information technology and defense systems industries. Mr. Sandson has served on five corporate boards of directors previously.

About IdeaEdge Inc.

Headquartered in San Diego, IdeaEdge Inc. (OTC BB: IDED) developsgift card programs. The company distributes its gift cardsprimarily through major retail channels and online. The company'sflagship gift card program is based on American Idol(TM), aleading entertainment and consumer merchandise brand in the U.S.The company will offer a wide range of consumer merchandise withAmerican Idol(TM) and future brand partners

Going Concern Doubt

Cordovano and Honeck LLP, in Englewood, Colorado, expressedsubstantial doubt about IdeaEdge Inc.'s ability to continue as agoing concern after auditing the company's consolidated financialstatements for the year ended Sept. 30, 2007. The auditing firmreported that the company has incurred net losses since inceptionand has a net capital deficit at Sept. 30, 2007.

The company said that these factors, among others, create a substantial doubt about the company's ability to continue as a going concern. The company is dependent upon sufficient future revenues, additional sales of its securities or obtaining debt financing to meet its cash requirements. Barring its generation of revenues in excess of its costs and expenses or the company's obtaining additional funds from equity or debt financing, it will not have sufficient cash to continue to fund its operations throughJune 30, 2009.

The company posted $748,025 in net losses on $1,817 in revenues for the three months ended June 30, 2008.

IGNIS PETROLEUM: Delays Annual Report Filing with SEC-----------------------------------------------------Ignis Petroleum Group Inc. disclosed in a Securities and Exchange Commission filing that it was unable to timely file its annual report on Form 10-K by Sept. 30, 2008, because it was unable to compile and prepare the requisite formal information necessary to complete the report. The annual report will be filed on or before the 15th calendar day following the prescribed due date.

About Ignis Petroleum

Based in Plano, Texas, Ignis Petroleum Group Inc. (OTC BB: IGPG)-- http://www.ignispetroleum.com/-- is an oil and gas company focused on exploration, development and production of crude oiland natural gas reserves primarily in the onshore areas of UnitedStates Gulf Coast and Mid-Continent.

Going Concern Disclaimer

Hein & Associates LLP, in Dallas, expressed substantial doubtabout Ignis Petroleum Group Inc.'s ability to continue as agoing concern after auditing the company's consolidated financialstatements for the year ended June 30, 2007, and 2006. Theauditing firm reported that the company has suffered recurringlosses from operations and its total liabilities exceeds its totalassets.

At March 31, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $505,452 in total current assetsavailable to pay $2,959,109 in total current liabilities.

The company reported a net loss of $208,056, on total revenue of$593,449, for the third quarter ended March 31, 2008, comparedwith a net loss of $1,873,508, on total revenue of $262,188, in the same period last year.

IMPLANT SCIENCES: Delays Filing of Annual Report on Form 10-K-------------------------------------------------------------Implant Sciences Corporation disclosed in a Securities and Exchange Commission filing that it was unable file its Annual Report on Form 10-K on or prior to the prescribed filing date of Sept. 29, 2008.

The company expects to file the Form 10-K within 15 days after the filing deadline.

The company anticipates reporting net loss from continuing operations of approximately $10,559,000 on revenues of approximately $5,152,000 for the year ended June 30, 2008 as compared to a net loss from continuing operations of $4,733,000 on revenues of approximately $4,582,000 for the corresponding prior year period.

About Implant Sciences

Headquartered in Wakefield, Mass., Implant Sciences Corporation -- http://www.implantsciences.com/-- develops, manufactures and sells products through its primary business units: (i) explosivestrace detection systems for homeland security, defense, and othersecurity related applications and (ii) state of the art servicesfor the medical and semiconductor industries. The company hasdeveloped proprietary technology used in its commercial portableand bench-top ETD systems, which ship to a growing number oflocations domestically and around the world.

Going Concern Disclaimer

As reported in the Troubled Company Reporter on Oct. 19, 2007,UHY LLP, in Boston, expressed substantial doubt about ImplantSciences Corporation's ability to continue as a going concernafter auditing the company's consolidated financial statements forthe fiscal year ended June 30, 2007. The auditing firm pointed tothe company's recurring losses from operations.

Implant Sciences Corp. reported a net loss of $1,528,000, onsecurity revenues of $787,000, for the third quarter endedMarch 31, 2008, compared with a net loss of $1,892,000, onsecurity revenues of $1,121,000, in the same period last year.

At March 31, 2008, the company's consolidated balance sheet showed$9,665,000 in total assets, $5,274,000 in total liabilities,$2,551,000 in redeemable convertible preferred stock, and$1,840,000 in total stockholders' equity.

IMPLANT SCIENCES: Amends Laurus Securities Purchase Agreement -------------------------------------------------------------Implant Sciences Corporation disclosed in a Securities and Exchange Commission filing that it entered with LV Administrative Services, Inc., as administrative and collateral agent for each of Laurus Master Fund, Ltd., and Valens Offshore SPV I, Ltd., into an amendment, effective as of Sept. 29, 2008, to the Securities Purchase Agreement dated Sept. 29, 2005, between the Company and Laurus.

Under the amendment, the company paid $250,000 to the agent, which payment is being applied first to any accrued and unpaid dividends on the shares of Series D Cumulative Convertible Preferred Stock purchased by Laurus pursuant to the Purchase Agreement, and then to the outstanding principal balance under the Purchase Agreement and certain related documents.

In exchange for the payment, the Holders agreed to change the Mandatory Redemption Date of the Series D Cumulative Convertible Preferred Stock from Sept. 29, 2008, to Oct. 24, 2008, at which time the remaining principal is due.

About Implant Sciences

Headquartered in Wakefield, Mass., Implant Sciences Corporation -- http://www.implantsciences.com/-- develops, manufactures and sells products through its primary business units: (i) explosivestrace detection systems for homeland security, defense, and othersecurity related applications and (ii) state of the art servicesfor the medical and semiconductor industries. The company hasdeveloped proprietary technology used in its commercial portableand bench-top ETD systems, which ship to a growing number oflocations domestically and around the world.

Going Concern Disclaimer

As reported in the Troubled Company Reporter on Oct. 19, 2007,UHY LLP, in Boston, expressed substantial doubt about ImplantSciences Corporation's ability to continue as a going concernafter auditing the company's consolidated financial statements forthe fiscal year ended June 30, 2007. The auditing firm pointed tothe company's recurring losses from operations.

Implant Sciences Corp. reported a net loss of $1,528,000, onsecurity revenues of $787,000, for the third quarter endedMarch 31, 2008, compared with a net loss of $1,892,000, onsecurity revenues of $1,121,000, in the same period last year.

At March 31, 2008, the company's consolidated balance sheet showed$9,665,000 in total assets, $5,274,000 in total liabilities,$2,551,000 in redeemable convertible preferred stock, and$1,840,000 in total stockholders' equity.

INCYTE CORPORATION: Wants to Withdraw 2006 Registration Statement-----------------------------------------------------------------Incyte Corporation filed on Oct. 1, 2008, with the Securities and Exchange Commission a request to withdrawal of its registration statement on Form S-3, File No. 333-138866, covering $151,800,000 aggregate principal amount of 3-1/2% Convertible Subordinated Notes due 2011 and the 13,531,224 shares of the Company's common stock, $.001 par value, issuable upon conversion of the Notes to be sold by certain selling security holders.

The Registration Statement was filed on Nov. 21, 2006, and became effective on Dec. 8, 2006.

Incyte filed the withdrawal request because the obligations to maintain the effectiveness of the Registration Statement under the Registration Rights Agreement have expired.

The Company de-registers the Notes, and shares of its Common Stock into which the Notes are convertible, registered pursuant to the Registration Statement that remain unsold.

About Incyte Corp.

Based in Wilmington, Delaware, Incyte Corporation (Nasdaq: INCY)-- http://www.incyte.com/-- is a drug discovery and development company focused on developing proprietary small molecule drugs totreat serious unmet medical needs. Incyte's pipeline includesmultiple compounds in Phase I and Phase II development foroncology, inflammation and diabetes.

* * *

As reported in The Troubled Company Reporter on Aug. 4, 2008, thecompany posted net loss of $45.6 million for the quarter endedJune 30, 2008. The company's balance sheets showed $204.7 millionin total assets and and $441.9 million in total liabilities,resulting in a $237.2 million stockholders' deficit.

Based in Lexington, Massachusetts, Indevus Pharmaceuticals Inc.(Nasdaq: IDEV) -- http://www.indevus.com/-- is a specialty pharmaceutical company engaged in the acquisition, development andcommercialization of products to treat conditions in urology andendocrinology.

At June 30, 2008, the company's balance sheet showed total assetsof $173.7 million and total liabilities of $291.8 million,resulting in a $118.0 million stockholders' deficit.

INNUITY INC: James Crisera Quits as President for Promotions Unit-----------------------------------------------------------------Innuity, Inc. disclosed in a Securities and Exchange Commission filing that James D. Crisera resigned as President, Promotions Division, effective Oct. 2, 2008, for personal reasons and to pursue other interests.

Headquartered in Redmond, WA, Innuity, Inc. (OTCBB: INNU) --http://www.innuity.com/-- is a Software as a Service (SaaS) company that designs, acquires, and integrates applications todeliver solutions for small business. Innuity's Internettechnology is based on an affordable, on-demand model that allowssmall businesses to simply interact with customers, businesspartners and vendors and efficiently manage their businesses.Innuity delivers its on-demand applications through its Internettechnology platform, Innuity Velocity(TM).

As of June 30, 2008, the company's balance sheet showed total current assets of $1.8 million and total current liabilities of $3.8 million. The company had total assets of $2.7 million, $4.4 million in total liabilities, and total stockholders' deficit of $1.7 million.

INTEGRAL VISION: Grants Restricted Shares & Options to Executives-----------------------------------------------------------------Integral Vision Inc. disclosed in a Securities and Exchange Commission filing that on Jan. 1, 2009, it will grant to Mark Doede, President, Chief Operating Officer and Chief Financial Officer, 116,000 restricted shares of its common stock that will vest upon the repayment of the Company's Class 2 Notes. This grant is only effective if Mr. Doede is an employee of the Company as of January 1, 2009.

Mr. Doede, President, Chief Operating Officer and Chief Financial Officer was granted Sept. 17, 2008, 184,000 restricted shares of the Company's common stock that will vest upon the repayment of its Class 2 Notes as provided for in the Fifth Amended Note and Warrant Purchase Agreement.

On Sept. 17, 2008, the Board of Directors of Integral Vision granted these restricted shares of the Company' common stock and stock options, as authorized under the 2008 Equity Incentive Plan of the Company, to certain officers:

-- 500,000 restricted shares of the Company's common stock that will vest on Jan. 1, 2009;

-- 500,000 restricted shares of the Company's common stock that will vest upon the repayment of the Company's Class 2 Notes as provided; and

-- a Non-Qualified Stock Option that vests immediately for the right to purchase 500,000 shares of the Company's common stock for a per share exercise price equal to the closing price for a share of the Company's common stock as listed on the OTC Bulletin Board as of Sept. 17, 2008.

-- Andrew Blowers, Chief Technology Officer of the Company, has been granted Incentive Stock Options for the right to purchase these shares of the Company's common stock:

-- 168,000 shares, which option shall vest on Dec. 31, 2008;

-- 40,000 shares, which option shall vest on Sept. 15,2009; and

-- 35,000 shares, which option shall vest on Sep. 15, 2010.

The per share exercise price for these shares shall be equal to the closing price for a share of the Company's common stock as listed on the OTC Bulletin Board as of Sept. 17, 2008.

-- Jeffrey Becker, Senior Vice President of the Company, has been granted Incentive Stock Options for the right to purchase these shares of the Company's common stock:

-- 157,000 shares, which option shall vest on Dec. 31, 2008;

-- 75,000 shares, which option shall vest on Sept. 15, 2009; and

-- 25,000 shares, which option shall vest on Sept. 15, 2010.

The per share exercise price for these shares shall be equal to the closing price for a share of the Company's common stock as listed on the OTC Bulletin Board as of Sept. 17, 2008.

-- Paul M. Zink, Vice President of Applications Engineering of the Company, has been granted Incentive Stock Options for the right to purchase these shares of the Company's common stock:

-- 175,000 shares, which option shall vest on Dec. 31, 2008; and

-- 25,000 shares, which option shall vest on Sept. 15, 2009.

The per share exercise price for these shares shall be equal to the closing price for a share of the Company's common stock as listed on the OTC Bulletin Board as of Sept. 17, 2008.

Rehmann Robson, P.C., in Troy, Michigan, expressed substantialdoubt about Integral Vision Inc.'s ability to continue as a goingconcern after auditing the company's financial statements for theyear ended Dec. 31, 2007. The auditing firm reported that thecompany is sustaining recurring losses from operations and ishaving difficulties in achieving the necessary sales to attainprofitability.

Integral Vision Inc.'s balance sheet at June 30, 2008, showed$908,000 in total assets and $5,651,000 in total liabilities,resulting in a $4,743,000 total stockholders' deficit.

At June 30, 2008, the company's balance sheet also showedstrained liquidity with $668,000 in total current assets availableto pay $5,651,000 in total current liabilities.

The company reported a net loss of $649,000 on total revenues of$470,000 for the second quarter ended June 30, 2008, compared witha net loss of $866,000 on total revenues of $94,000 in thecorresponding period a year ago.

IRIDIUM SATELLITE: Moody's Holds Ratings; Changes Outlook to Dev.-----------------------------------------------------------------Moody's Investors Service revised Iridium Satellite LLC's ratings outlook to developing from stable. At the same time, Moody's affirmed the company's B2 corporate family rating, B1 probability of default rating, SGL-1 speculative grade liquidity rating, and the ratings of individual debt instruments. The rating action was prompted by Iridium's September 23, 2008 announcement that it intends to combine with and be merged into GHL Acquisition Corp., a publicly traded special purpose acquisition company sponsored by Greenhill & Co., Inc., an independent investment bank with a 17% ownership interest in GHL.

Following completion of the transaction, which, subsequent to receipt of all requisite approvals is expected to close in the first part of 2009, the combined entity will be renamed Iridium Communications Inc. and will apply for listing on the NASDAQ. The transaction values Iridium at $591 million (inclusive of $131 million of outstanding net indebtedness).

At this juncture, there is no cause to adjust Iridium's existing ratings. Iridium continues to perform quite well, and the pending transaction provides positive developments as the company looks to finalize and implement a plan to launch its next generation satellite constellation, "Iridium Next." However, while this transaction provides Iridium the ability to repay all outstanding debt, this is not certain, and there has been no definitive disclosure concerning Iridium Next. Consequently, with the key matters underpinning the existing B2 CFR remaining unchanged, there is no cause to adjust Iridium's debt ratings at this time.

However, GHQ will be filing a definitive proxy statement with the Securities and Exchange Commission that may provide additional details concerning Iridium's debt and plans for Iridium Next along with more detailed financial information. Accordingly, it is appropriate to revise the ratings outlook to developing to reflect the fact that information may be forthcoming that may have a ratings impact. Moody's intends to comment further subsequent to the proxy statement being filed.

Moody's most recent rating action was on 5 March 2008, at which time Moody's upgraded Iridium's CFR by one notch to B2 from B3 and also upgraded the company's PDR and SGL ratings to B1 and SGL-1, respectively. At that time, it was noted that favorable short term influences caused default risk to be assessed as less than the usual standard for a B2 CFR. Conversely, it was noted that as the company's asset base nears the expiration of its useful life, the loss given default assessment is higher than standard.

Accordingly, the probability of default rate was assessed and remains as more akin to B1 risk levels, and the mean LGD expectation for the enterprise is 65%.

Headquartered in Bethesda, Maryland, Iridium Satellite LLC is a mobile satellite services company that provides global telecommunication services to government and commercial customers.

JDA SOFTWARE: Moody's Rates Proposed $25MM Secured Revolver 'B1'----------------------------------------------------------------Moody's Investors Service assigned a B1 rating to JDA Software's proposed $25 million senior secured revolver, $425 million senior secured term loan and affirmed the company's B1 corporate family rating with a stable outlook. Proceeds from the proposed debt offering will be used to finance JDA's acquisition of i2 Technologies and repay existing debt. Simultaneously, Moody's lowered JDA's speculative grade liquidity rating to SGL-2 from SGL-1 reflecting the company's reduced financial flexibility as a result of the transaction and ongoing concerns about the global economic situation.

The B1 corporate family rating incorporates Moody's favorable view of the intended transaction and reflects the strength of JDA's market position as a supplier of sophisticated supply chain planning and management software solutions to large and medium-sized customers in the retail and manufacturing markets, enhanced scale and market position that is expected from the i2 acquisition, JDA's moderate pro forma leverage at 3.5x, its stable free cash flow generation capabilities as well as its expected good liquidity position.

The rating is constrained by the JDA's relatively small size in the highly competitive and fragmented supply chain management software market with formidable large-scale cross platform ERP competitors such as SAP and Oracle as well as smaller specialty software vendors, near-term integration challenges from the proposed i2 acquisition, which had been underperforming due to poor execution, senior management turnover, and a public sale process.

In addition, JDA also faces the potential for demand curtailment, particularly in the retail vertical, given the current challenging macroeconomic environment. Moody's also notes that market maturation or heightened industry competition could prompt further debt-financed acquisition activity by JDA, although additional material acquisitions in the near-term are unlikely given the pending i2 acquisition.

The affirmation of corporate family rating and the stable outlook reflect Moody's expectation that JDA will continue to maintain its solid market position and generate strong operating profits and free cash flows, which would be used to gradually repay debt. Moody's also expects that the company will adhere to conservative financial policy with respect to dividend payouts and share repurchases.

SGL rating was lowered to SGL-2 from SGL-1 reflecting JDA's reduced financial flexibility as a result of the leveraging transaction. Pro forma for the i2 acquisition, balance sheet cash is expected to be approximately $77 million (down from almost $125 million as of June 2008). In addition, the company's new $25 million revolving credit facility (as compared to the current $50 million), while expected to be undrawn over the near-term is small relative to the size of JDA's business. Lastly, the new credit facility contains sizeable term loan amortizations, which will limit the company's free cash flow.

Headquartered in Scottsdale, Arizona, JDA is a supplier of enterprise supply chain management software and optimization solutions for the manufacturing, wholesale distribution, retail and service industries. Pro forma revenue for the combined company is expected to be approximately $635 million.

A hearing is set for Nov. 12, 2008, for final approval, the reportsays.

According to Mr. Mason, Kirby Oaks intends to use the cashcollateral to allow to continue operating. The company does notexpect to access postpetition loan to fund its case, he continued.

Secured creditor First Tennessee Bank NA, who asserted$8.9 million in claims, protested to the company's request to use cash collateral citing that it is not adequately protected, theDeal relates. The creditor's objection is pending a final order,the report notes.

LANDSOURCE COMMUNITIES: TPC Membership Program Tops Agenda----------------------------------------------------------Lawyers for LandSource Communities Development LLC hope that the U.S. Bankruptcy Court for the District of Delaware will grant Newhall Land permission to keep golf club TPC at Valencia's Membership Deposit Refund Program going while trustees wrangle with how to pay millions of dollars to hundreds of creditors, the Signal, a daily community newsparer in Santa Clara Valley, Calif., reported Saturday.

The report relates that the program allows members to cash in their memberships. Newhall Land & Farmings owns TPC at Valencia and LandSource owns Newhall Land. Both companies were included in the debtor company list filed by LandSource.

Newhall Land notified TPC members that their membership money tops this week's agenda in bankruptcy court, the report says.

"We've notified members and we absolutely value their commitment and fully intend to honor their memberships," said Marlee Lauffer, director of communications for Newhall Land, according to the report.

LandSource lawyers fear a run on memberships similar to a run on banks if their request is not granted, according to the report.

The report says the Tournament Players Club at Valencia has about 330 members. Memberships range from a Junior rate of $25,000 demanding monthly dues of $380 to a Corporate membership valued at $65,000 requiring a $485 a month paid in dues to corporate designees. If all memberships were held by junior members, it would amount to as little as $8.25 million. If all were corporate members that amount would be more than $21.4 million.

About LandSource Communities

LandSource Communities Development LLC, which operates in Arizona,California, Florida, New Jersey, Nevada and Texas, is involved inthe planning and development of master planned communities andtransforming undeveloped land into ready-to-build home sites andcommercial properties. With the exception of one developmentproject in Marina del Rey, California, LandSource does not buildhomes or commercial properties.

LandSource and 20 of its affiliates filed for chapter 11bankruptcy protection before the U.S. Bankruptcy Court for theDistrict of Delaware on June 8, 2008 (Lead Case No. 08-11111).The Debtors are represented by Marcia Goldstein, Esq., at WeilGotshal & Manges in New York, and Mark D. Collins, Esq., atRichards Layton & Finger in Wilmington, Delaware. Lazard Freres &Co. acts as the Debtors' financial advisors, and Kurtzmann CarsonConsultants serves as the Debtors' notice and claims agent.

According to the Troubled Company Reporter on May 22, 2008,LandSource sought help from its lender consortium to restructure$1.24 billion of its debt. LandSource engaged a 100-bank lendergroup led by Barclays Capital Inc., which syndicates LandSource'sdebt. LandSource had received a default notice on that debt fromthe lender group after it was not able to timely meet its paymentsduring mid-April. However, LandSource failed to reach anagreement with its lenders on a plan to modify and restructure itsdebt, forcing it to seek protection from creditors.

LEHMAN BROTHERS: Doesn't Need Financing Anymore, Panel Says-----------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New York previously allowed Lehman Brothers Holdings, Inc., and its affiliates to borrow, on an interim basis, up to $200,000,000 pursuant to a Senior Secured Superpriority Debtor in Possession Credit Agreement with Barclays Bank plc. The Court will convene a hearing to consider final approval of the DIP Financing on Oct. 16 at 10:00 a.m.

The Official Committee of Unsecured Creditors believes that several events have transpired since the approval of the Interim DIP Order that render the DIP Agreement no longer in the best interests of the Debtors' estates.

Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, notes that the Court-approved Asset Purchase Agreement between Barclays Capital Inc., and the Debtors for the sale of certain of their assets resulted in cash proceeds to them of more than $1 billion.

Since the Debtors have access to the $1 billion in funds for their day-to-day operations and given the consummation of the Barclays APA, the Debtors' postpetition financial obligations have diminished substantially, Mr. Dunne points out.

In addition, the Debtors are anticipating receipt of significant additional amounts from contract counterparties. Therefore, the legal and factual conditions for approving the DIP Agreement on a final basis simply cannot be satisfied and the Debtors should repay the amounts they initially borrowed and they should terminate the DIP Agreement, notes Mr. Dunne.

Mr. Dunne relates that during the hearing to approve the DIP Motion on an interim basis, the Committee had no reason to expect that the Debtors would have the ability to repay all amounts borrowed under the DIP Agreement before the occurrence of a final hearing for the DIP Motion.

Moreover, the DIP Lenders interpret the DIP Interim Order to have granted them final relief with respect to material aspects of the Debtors' DIP Motion, including certain fees and penalties.

The Committee asserts that to the extent the DIP Lenders assert that the DIP Interim Order is final with respect to any relief other than authorizing the initial draw of $200,000,000, the Court should reconsider the terms and provisions of the DIP Interim Order.

Accordingly, the Committee asks the Court to reconsider the terms and provisions of the DIP Interim Order with respect to any issue in the Order that may be deemed to have a final effect.

The Committee's request will be considered by the Court at a hearing on October 16, 2008, at 10:00 a.m. Objections are due October 13, 2008 at 4:00 p.m.

Noteholders: Terms to Give Control to DIP Lenders

The Informal Noteholder Group, consisting of unaffiliated holders of senior and subordinated notes issued by Lehman Brothers Holdings Inc., asserts that several provisions of the DIP Credit Agreement are unduly burdensome and provide the DIP Lenders with undue control over the administration of the Debtors' Chapter 11 cases to the detriment of their estates and their creditors.

Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, avers that the Court should require the Debtors to make several technical modifications to the DIP Agreement or to the Final DIP Order in connection with approving the DIP Facility on a final basis.

Mr. Dublin asserts that several provisions of the DIP Credit Agreement are overly broad and burdensome to the Debtors, their estates and their creditors.

Therefore, the Informal Noteholder Group proposes these modifications to the DIP Credit Agreement:

* iron-clad protections should be included to ensure that the Debtors are repaid for any amounts advanced to their affiliates and those protections should govern the intercompany obligations among the parties. The protections should dictate whether an event of default under the DIP Facility has occurred and not solely the failure of debtor- affiliate to promptly reimburse the Debtors for DIP Facility borrowings advanced to the affiliate;

* Section 2.17 provides that there will be restrictions on the Debtors' ability to access sale proceeds, including restrictions on the ability of a subsidiary to upstream sale proceeds to the Debtors. A default under the DIP Facility may be triggered as a result of those restrictions, which should be modified in order to recognize those limitations;

* Section 4.12 provides that there are no unstayed adverse proceedings against the Debtors that could have a materially adverse effect. Absent a sworn affirmation from the Debtors' authorized representative that the statements under Section 4.12 are accurate, the provision must be removed from the DIP Credit Agreement;

* Section 5.16 requires the appointment of Brian Marsal as the Debtors' chief restructuring officer, which should be modified to provide a reasonable period of time for the retention of an acceptable replacement if Mr. Marsal can no longer serve as the Debtors' chief restructuring officer.

* Section 5.19 does not allow for any variance from the DIP Facility budget, which should be modified to permit a reasonable variance percentage as is common for postpetition credit facilities;

* Section 6.9 provides that the Debtors will not permit any subsidiaries to consolidate, liquidate or convey all or any part of their businesses, assets or property without the approval of the DIP Lenders. Section 6.9 should be deleted as it gives the DIP Lenders undue control over the Debtors;

* Section 8.1(a) makes it an event of default if the Debtors fail to make any payment when due under the DIP Credit Agreement, which should be modified to provide the Debtors with a reasonable grace period in connection with their payment obligations;

* Section 8.1(b) provides that there will be an event of default if the Debtors default on any postpetition debt of more that $1,000,000 or if any subsidiary defaults on a prepetition or postpetition debt in excess of $100,000. Section 8.1(b) should be modified to carve out the instances where a default is the direct result of the filing of a Chapter 11 petition by the Debtors' affiliate;

* Sections 8.1(f) and (g) provide that the voluntary or involuntary bankruptcy of any Material Subsidiary of the Debtors is an event of default, which should be deleted or amended to permit the Debtors' Material Subsidiaries to file a Chapter 11 petition;

* Section 8.1(p)(v) provides that a Court order lifting or modifying the automatic stay to allow any creditor to execute upon or enforce a lien on any DIP Facility collateral in excess of $50,000 is an event of default, which should be modified to increase the threshold amount or a material adverse effect qualification be added;

* Section 10.5 requires approval of 100% of the DIP Lenders to waive a mandatory prepayment of the DIP Facility or an event of default, which should be modified to provide a less burdensome mechanism for those waivers;

* the indemnification provisions and the definition of Indemnified Liabilities require the Debtors to indemnify the DIP Lenders from any transaction related to the DIP Facility, which should be modified so that it will only be solely limited to the DIP Facility;

* the provision permitting modifications to the DIP Agreement without further Court approval after notice only to the Debtors, the Creditors Committee and the U.S. Trustee, should be modified to provide the Informal Noteholder Group with the same notice and opportunity to object or that provision should be changed to require that modifications cannot be permitted without prior Court approval;

* to the extent the Debtors are required to pay a premium or penalty in connection with the prepayment of any obligations under the DIP Facility, the Debtors should be required to disclose those obligations and the obligations should be thoroughly vetted by the Court; and

* the DIP Lenders should be required to provide the Debtors, the Creditors' Committee, the U.S. Trustee and the Informal Noteholder Group with copies of all invoices for which payment is requested and those parties should be given the opportunity to object to the invoices and with disputes resolved by the Court.

The Informal Noteholder Group asks the Court to deny approval of the Debtors' DIP Motion on a final basis absent the proposed Modifications.

PBGC: DIP Disregards Units' Retirement Plans

The Pension Benefit Guaranty Corporation slammed the treatment of proceeds from asset sales by Lehman Brothers Holdings' nondebtor subsidiaries under the proposed DIP financing, which is comprised of a $200 million revolving credit facility and a $250 million term loan.

In a court filing, the PBGC complained that the proposed DIP financing disregards payment of the nondebtor subsidiaries' liabilities under the Lehman Brothers Holdings Inc. RetirementPlan, which PBGC said is covered by Title IV of the Employee Retirement Income Security Act of 1974.

The PBGC said the proposed financing allows the upstreaming of asset sale proceeds through Lehman Brothers Holdings to Barclays Bank PLC and Barclays Capital, "without paying the superior claims of all creditors of the nondebtor subsidiaries."

"To date, the Debtors have not stated their intentions regarding the pension plan. They have not identified any entity that will assume sponsorship of the pension plan once [Lehman Brothers Holdings] liquidates its assets," the court filing said.

The PBGC suggested that the proceeds from an asset sale of any of Lehman Brothers Holdings' subsidiaries be held in escrow until the company "provides for the assumption or standard termination of the pension plan or satisfaction of termination-relatedpension liabilities."

The PBGC is the U.S. government agency created to administer the benefit pension plan termination insurance program under the Employee Retirement Income Security Act of 1974.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide. Through its team of more than 25,000 employees, LehmanBrothers offers a full array of financial services in equity andfixed income sales, trading and research, investment banking,asset management, private investment management and privateequity. Its worldwide headquarters in New York and regionalheadquarters in London and Tokyo are complemented by a network ofoffices in North America, Europe, the Middle East, Latin Americaand the Asia Pacific region. The firm, through predecessorentities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed$639 billion in assets and $613 billion in debts, effectivelymaking the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings,Inc., does not include any of its subsidiaries.

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd., LB Holdings PLC and LB UK REHoldings Ltd. These are currently the only UK incorporatedcompanies in administration. Tony Lomas, Steven Pearson, DanSchwarzmann and Mike Jervis, partners at PricewaterhouseCoopersLLP, have been appointed as joint administrators to LehmanBrothers International (Europe) on September 15, 2008. The jointadministrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filedfor bankruptcy protection in the U.S. Bankruptcy Court for theSouthern District of New York, have combined liabilities ofJPY4 trillion (US$38 billion). Lehman Brothers Japan Inc.reported about JPY3.4 trillion ($33 billion) in liabilities in itspetition. Akio Katsuragi, a former Morgan Stanley executive, runsLehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities AsiaLimited and Lehman Brothers Futures Asia Limited have suspendedits operations with immediate effect, including ceasing to tradeon the Hong Kong Securities Exchange and Hong Kong FuturesExchange, until further notice. The Asian units' asset managementcompany, Lehman Brothers Asset Management Limited, will continueto operate on a business as usual basis. A further noticeconcerning the retail structured products issued by or arranged byany Lehman Brothers group company will be issued as soon aspossible, a press statement said.

LEHMAN BROTHERS: Newport To Depose LBHI on Lost Transfers---------------------------------------------------------Newport Global Opportunities Fund LP, Newport Global Credit Fund (Master) L.P., PEP Credit Investor L.P. and Providence TMT Special Situations Fund L.P. seek the U.S. Bankruptcy Court for the Southern District of New York's authorization to conduct discovery pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, in connection with, among other things, the transfer of securities, cash or other property held by or for Lehman Brothers International Europe.

The Newport Funds propose to conduct discovery in the form of deposition of Lehman Brothers Holdings, Inc., and document production involving the fund transfers.

The Newport Funds previously obtained prime brokerage services from Lehman Brothers Inc. are pursuant to customer account agreements. LBIE, Lehman Brothers Special Financing, and other members of the Lehman group were also parties to the Agreements.

On Sept. 10, the Funds instructed LBI to transfer assets held by LBIE as collateral under the Agreements to Credit Suisse, which would assume duties as the prime broker going forward. Given the straightforward nature of the transfer, the Funds expected that it would be completed within one business day. However, those expectations were not met, says Edward S. Weisfe1ner, Esq., at Brown Rudnick LLP.

On Sept. 15, LBIE and several other European affiliates were placed into administration proceedings under English law, and LBHI filed bankruptcy protection under Chapter 11 in the United States.

On Sept. 15, a representative of LBI advised the Funds that all accounts in the possession of LBIE were "under lockdown" and that PricewaterhouseCoopers LLP, appointed as joint administrators for the Lehman European group of companies, would provide an update on progress relating to the transfer.

The Newport Funds have informed LBIE, PwC and the Debtors that"harm would be visited upon the Funds in the event the transfers were not completed in an expedited manner". Despite warnings by the Funds the delay of the transfers would compromise a number of transactions with third parties, the transfers have not been completed, Mr. Curtis relates.

Mr. Curtis notes that in the aftermath of the chapter 11 filing, rumors abound that billions of dollars were swept to LBHI from its London affiliates on Sept. 12. However, since commencing the Chapter 11 cases, the Debtors have failed to disclose any kind of prepetition cash movement.

Accordingly, the Newport Funds ask the Bankruptcy Court to allow them to depose persons knowledgeable about the transfers and demand documents from the Debtors in connection with the flow, movement and transfer of any funds, cash, securities, repurchase agreements, swap agreements, derivative securities and other property after July 15, 2008, between, on the one hand LBHI or LBI, and other other, the affiliates and other subsidiaries of LBHI, including LBSF and LBIE.

The Court will convene a hearing on Newport's request on October 16, 2008 at 10:00 a.m. Objections are due October 10, at 4:00 p.m.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide. Through its team of more than 25,000 employees, LehmanBrothers offers a full array of financial services in equity andfixed income sales, trading and research, investment banking,asset management, private investment management and privateequity. Its worldwide headquarters in New York and regionalheadquarters in London and Tokyo are complemented by a network ofoffices in North America, Europe, the Middle East, Latin Americaand the Asia Pacific region. The firm, through predecessorentities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed$639 billion in assets and $613 billion in debts, effectivelymaking the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings,Inc., does not include any of its subsidiaries.

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd., LB Holdings PLC and LB UK REHoldings Ltd. These are currently the only UK incorporatedcompanies in administration. Tony Lomas, Steven Pearson, DanSchwarzmann and Mike Jervis, partners at PricewaterhouseCoopersLLP, have been appointed as joint administrators to LehmanBrothers International (Europe) on September 15, 2008. The jointadministrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filedfor bankruptcy protection in the U.S. Bankruptcy Court for theSouthern District of New York, have combined liabilities ofJPY4 trillion (US$38 billion). Lehman Brothers Japan Inc.reported about JPY3.4 trillion ($33 billion) in liabilities in itspetition. Akio Katsuragi, a former Morgan Stanley executive, runsLehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities AsiaLimited and Lehman Brothers Futures Asia Limited have suspendedits operations with immediate effect, including ceasing to tradeon the Hong Kong Securities Exchange and Hong Kong FuturesExchange, until further notice. The Asian units' asset managementcompany, Lehman Brothers Asset Management Limited, will continueto operate on a business as usual basis. A further noticeconcerning the retail structured products issued by or arranged byany Lehman Brothers group company will be issued as soon aspossible, a press statement said.

LEHMAN BROTHERS: To Sell Eagle Energy to EDF for $230 Million-------------------------------------------------------------Lehman Brothers Holdings Inc., asked the U.S. Bankruptcy Court for the Southern District of New York for permission to sell their stake in Eagle Energy Partners, citing as reason its inability to extend credit to the energy marketing company.

"The events of the past few weeks that drove down Lehman Brothers' credit standing were particularly harmful to the ability of the [company] to sustain its operations. These recent financial difficulties made it impossible to continue extending credit to Eagle, which has, in turn, put Eagle's operations at risk," the company said in a court filing.

Lehman Brothers owns limited and general partnership interests in Eagle Energy. The Houston-based energy marketing company relies on Lehman Brothers for extensions of credit to fund its operations. Eagle presently owes Lehman Brothers about $663,861,636.

Lehman Brothers said it has already entered into an agreement to sell for $230 million all of its partnership interests to EDF Trading North America Management LLC, and EDF Trading North America Inc.

The key terms of the purchase agreement are:

(1) The general partnership interests would be sold to EDF Trading North America Management LLC, while the limited partnership interests would be sold to EDF Trading North America Inc.

(2) Lehman Brothers would reduce Eagle Energy's debt by $433,378,289. Lehman Brothers would also assign all of its rights under the loan to EDF Trading North America Inc., in return for payment of $230,483,347.

In addition, any amounts owed to or by Eagle Energy, Lehman Brothers and any of its affiliates would be deemed paid, including a $19,516,553 receivable owed by Lehman Brothers Commodity Services Inc., to Eagle Energy.

(3) Before the sale closing, Lehman Brothers would either assign or sublet to Eagle Energy on a back-to back basis its lease contract with Guggenheim Concourse for commercial office space in Houston.

(4) The parties must obtain court approval of the agreement, obtain authorization from the Federal Energy Regulatory Commission, and the waiting period under the Hart-Scott-Rodino Act filing must expire prior to the closing.

(4) The buyers would pay any transfer, sales, use, documentary, stamp or similar tax owed in connection with the sale transaction.

(5) Lehman Brothers would only indemnify the buyers after the closing of the transaction for any breach of a representation or warranty regarding title to the partnership interests, due authorization or enforceability of the purchase agreement; and any failure to honor Lehman Brothers' further assurances covenant.

(6) Within 90 days after the closing of the transaction, Lehman Brothers would provide transition services to Eagle Energy necessary to operate the business in a manner substantially similar to the services Lehman Brothers currently provides. Lehman Brothers must be reimbursed in arrears on a monthly basis for services performed.

Under the deal, Lehman Brothers and the buyers also agreed to retain seven employees including two "specifically designated individuals," whom they considered essential for Eagle Energy's business operations.

The purchase agreement would be terminated if the transaction is not made by Dec. 31 or if the agreement is not approved by the Court by Nov. 30.

The Court will convene a hearing to consider approval of the proposed sale on Oct. 16.

Eagle Energy -- http://www.eagleenergypartners.com/-- acquires, manages, and delivers natural gas and electric power across the United States and Canada. Operating 24/7 from Houston, Texas-as well as from Atlanta, Pittsburgh, and Chicago-Eagle Energy offersaggressive, professional asset management; around-the-clock power marketing; and extensive gas supply, transportation, and storage.

In a press statement, John Rittenhouse, CEO of EDFT said, "EDFT is very pleased with this transaction. We are impressed by Eagle's management and staff, their customer focus and market knowledge. Eagle will become the centerpiece of EDFT's wholesale operations in North America. This acquisition is consistent with EDF's strategy of optimising its gas supply in the global LNG market."

About EDF Trading

EDF Trading is an active participant in the international wholesale energy markets. It buys and sells electricity, emissions, natural gas, coal, freight, biomass, and oil.EDF Trading is one of the largest electricity traders in Europe, a leading European gas trader, and an active participant in the global market for liquefied natural gas. It has traded in the EU emissions market since it began and is one of the top buyers of carbon credits from Clean Development Mechanism projects around the world. It also works alongside coal-fired power generators to provide biomass procurement, logistical and technical support.EDF Trading is a 100% owned subsidiary of EDF, Europe's largest power utility and a group active in all areas of the energy sector including generation, transmission, distribution and supply. EDF Trading is the interface to the wholesale energy markets for EDF in France and the UK. EDF Trading's expertise has been recognised by the industry. It has been awarded Electricity Europe House of the Year 2008 by Energy Risk magazine, International Coal Supplier of the Year in the 2008 McCloskeys Coal UK awards, and a Gold Award for Excellence in Emission Markets in the 2007 Energy Business Awards.

A spokesperson of EDF Trading disclosed to Reuters that the purchase price of the Eagle Energy transaction is confidential.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide. Through its team of more than 25,000 employees, LehmanBrothers offers a full array of financial services in equity andfixed income sales, trading and research, investment banking,asset management, private investment management and privateequity. Its worldwide headquarters in New York and regionalheadquarters in London and Tokyo are complemented by a network ofoffices in North America, Europe, the Middle East, Latin Americaand the Asia Pacific region. The firm, through predecessorentities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed$639 billion in assets and $613 billion in debts, effectivelymaking the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings,Inc., does not include any of its subsidiaries.

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd., LB Holdings PLC and LB UK REHoldings Ltd. These are currently the only UK incorporatedcompanies in administration. Tony Lomas, Steven Pearson, DanSchwarzmann and Mike Jervis, partners at PricewaterhouseCoopersLLP, have been appointed as joint administrators to LehmanBrothers International (Europe) on September 15, 2008. The jointadministrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filedfor bankruptcy protection in the U.S. Bankruptcy Court for theSouthern District of New York, have combined liabilities ofJPY4 trillion (US$38 billion). Lehman Brothers Japan Inc.reported about JPY3.4 trillion ($33 billion) in liabilities in itspetition. Akio Katsuragi, a former Morgan Stanley executive, runsLehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities AsiaLimited and Lehman Brothers Futures Asia Limited have suspendedits operations with immediate effect, including ceasing to tradeon the Hong Kong Securities Exchange and Hong Kong FuturesExchange, until further notice. The Asian units' asset managementcompany, Lehman Brothers Asset Management Limited, will continueto operate on a business as usual basis. A further noticeconcerning the retail structured products issued by or arranged byany Lehman Brothers group company will be issued as soon aspossible, a press statement said.

LEHMAN BROTHERS: Vanguard Wants Info on $500M LW-LLP Note Payment-----------------------------------------------------------------The Vanguard Group, Inc., asks the U.S. Bankruptcy Court for the Southern District of New York to enter an order clarifying, amending or modifying the order approving the sale of Lehman Brothers, Inc., and other assets to Barclays Capital, Inc., on the limited issue of whether the Court's Sept. 20 sale order authorized the repayment of a $500,000,000 promissory note in favor of LW-LLP Inc.

Vanguard is concerned that the Debtors may have transferred $500,000,000 of sale proceeds to a non-debtor affiliate in contravention to the representation of Debtors' counselthat the payment obligation to the non-debtor affiliate had already been extinguished by the time of the sale hearing.

On Sept. 20, 2008, Lehman Brothers Holdings Inc. and its units Lehman obtained Bankruptcy Court approval to sell assets to Barclays for a cash payment of $1.54 billion. According to Robert M. Hirsh, Esq., at Arent Fox LLP, due to the exigencies of the sale process, several key terms were still being revised immediately before the September 19 sale hearing.

Mr. Hirsh narrates that one of the changes to the sale terms involved the deletion of Section 10.2(d) of the Asset Purchase Agreement. Section 10.2(d) stated that as a condition to closing "the mortgage in favor of the Seller's Affiliate with respect to the premises at 745 Seventh Avenue, New York, New York shall have been fully repaid and extinguished". In explaining the deletion, Debtors' counsel stated that "as it turned out, Your Honor, there is no mortgage on that property. So we deleted that reference".

The Court, according to Mr. Hirsh, raised a concern regarding the proposed payment to a non-debtor affiliate. In response, Debtors' counsel explained that the deletion would not impact the estate's realization of value because the $500,000,000 promissory note on the 745 building had been "already" extinguished and that the full purchase price to be paid for the 745 building would be"transferred up to the holding company" level.

However, the final sale documents made available to the public on September 22, 2008, provided, a Clarification Letter explaining that "the $500,000,000 promissory note made by 745 in favor of LW-LLP Inc. will be fully repaid and extinguished", Mr. Hirsh points out.

Vanguard, thus notes, that it is now unclear whether the Debtorsused $500 million of sale proceeds to repay LW-LLP Inc., a non-debtor Lehman affiliate.

Aside from conflicting the record of the hearing, the payment of an inter-company claim without any proof or information about the validity of the claim and the corresponding denial of any party-in-interest to examine the validity of the inter-company claim has a significant potential to result in loss of value to the estate and harm to creditors, Mr. Hirsh contends. He notes that use of sale proceeds in this manner, would have the same effect as a sub rosa plan.

The transfer, according to Mr. Hirsh, deprives value to creditors of LBHI -- the intended recipient of the "full purchase price". Furthermore, he asserts, the payment of an inter-company claim without any proof or information about the validity of the claim will in effect deny other parties-in-interest the opportunity to examine the right of LW-LLP Inc. to receive those funds.

The Court will convene a hearing to consider Vanguard's request on Nov. 5, 2008 at 10:00 a.m. Objections are due Oct. 31, 2008 at 4:00 p.m.

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide. Through its team of more than 25,000 employees, LehmanBrothers offers a full array of financial services in equity andfixed income sales, trading and research, investment banking,asset management, private investment management and privateequity. Its worldwide headquarters in New York and regionalheadquarters in London and Tokyo are complemented by a network ofoffices in North America, Europe, the Middle East, Latin Americaand the Asia Pacific region. The firm, through predecessorentities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed$639 billion in assets and $613 billion in debts, effectivelymaking the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings,Inc., does not include any of its subsidiaries.

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd., LB Holdings PLC and LB UK REHoldings Ltd. These are currently the only UK incorporatedcompanies in administration. Tony Lomas, Steven Pearson, DanSchwarzmann and Mike Jervis, partners at PricewaterhouseCoopersLLP, have been appointed as joint administrators to LehmanBrothers International (Europe) on September 15, 2008. The jointadministrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filedfor bankruptcy protection in the U.S. Bankruptcy Court for theSouthern District of New York, have combined liabilities ofJPY4 trillion (US$38 billion). Lehman Brothers Japan Inc.reported about JPY3.4 trillion ($33 billion) in liabilities in itspetition. Akio Katsuragi, a former Morgan Stanley executive, runsLehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities AsiaLimited and Lehman Brothers Futures Asia Limited have suspendedits operations with immediate effect, including ceasing to tradeon the Hong Kong Securities Exchange and Hong Kong FuturesExchange, until further notice. The Asian units' asset managementcompany, Lehman Brothers Asset Management Limited, will continueto operate on a business as usual basis. A further noticeconcerning the retail structured products issued by or arranged byany Lehman Brothers group company will be issued as soon aspossible, a press statement said.

LEHMAN BROTHERS: Vanguard, Aegon to Serve on Creditors' Committee----------------------------------------------------------------- Diana Adams, the United States Trustee for Region 2, appointed two new members of the Official Committee of Unsecured Creditors in Lehman Brothers Holdings Inc.'s Chapter 11 cases. The two new members The Vanguard Group and Aegon USA replaced R.R. Donnelley & Sons Company and The Royal Bank of Scotland. R.R. Donnelley, which had less than $1 million exposure to Lehman, abruptly resigned from the Creditors Committee following its appointment.

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide. Through its team of more than 25,000 employees, LehmanBrothers offers a full array of financial services in equity andfixed income sales, trading and research, investment banking,asset management, private investment management and privateequity. Its worldwide headquarters in New York and regionalheadquarters in London and Tokyo are complemented by a network ofoffices in North America, Europe, the Middle East, Latin Americaand the Asia Pacific region. The firm, through predecessorentities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed$639 billion in assets and $613 billion in debts, effectivelymaking the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings,Inc., does not include any of its subsidiaries.

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd., LB Holdings PLC and LB UK REHoldings Ltd. These are currently the only UK incorporatedcompanies in administration. Tony Lomas, Steven Pearson, DanSchwarzmann and Mike Jervis, partners at PricewaterhouseCoopersLLP, have been appointed as joint administrators to LehmanBrothers International (Europe) on September 15, 2008. The jointadministrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filedfor bankruptcy protection in the U.S. Bankruptcy Court for theSouthern District of New York, have combined liabilities ofJPY4 trillion (US$38 billion). Lehman Brothers Japan Inc.reported about JPY3.4 trillion ($33 billion) in liabilities in itspetition. Akio Katsuragi, a former Morgan Stanley executive, runsLehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities AsiaLimited and Lehman Brothers Futures Asia Limited have suspendedits operations with immediate effect, including ceasing to tradeon the Hong Kong Securities Exchange and Hong Kong FuturesExchange, until further notice. The Asian units' asset managementcompany, Lehman Brothers Asset Management Limited, will continueto operate on a business as usual basis. A further noticeconcerning the retail structured products issued by or arranged byany Lehman Brothers group company will be issued as soon aspossible, a press statement said.

LPATH INC: Share Registration Statement Takes Effect----------------------------------------------------Lpath, Inc. disclosed in a Securities and Exchange Commission filing that its Registration Statement on Form S-1 File Number 333-153423 containing a prospectus that relates to the resale by certain selling security holders of up to 9,111,455 shares of the company's Class A common stock took effect on Sept. 29, 2008.

The Registration Statement relates to the resale of:

-- up to 7,090,999 shares of Lpath Class A common stock which were issued in connection with a private placement that closed on August 12 and 18, 2008;

-- up to 1,939,488 shares of Lpath Class A common stock which may be issued upon exercise of certain warrants issued in connection with a private placement that closed in August 2008; and

-- up to 80,968 shares of Lpath Class A common stock which may be issued upon exercise of certain warrants issued in connection with anti-dilution rights granted in the company's 2007 private placement which rights were triggered by the sale of common stock issued in connection with a private placement that closed on August 12 and 18, 2008.

Mr. Pancoast said that on Sept. 5, 2008, the closing sale price ofLpath's Class A common stock on the OTC Bulletin Board was $1.45.

On August 12, 2008 and August 18, 2008, Lpath entered into aSecurities Purchase Agreement with various accredited investorswhereby the company sold shares of its Class A common stock at aprice of $0.95 per share. Lpath raised approximately $6.7 millionpursuant to the 7,090,999 shares of Class A common stock and1,939,488 million warrants sold pursuant to the purchaseagreements.

As reported in the Troubled Company Reporter on April 22, 2008,San Diego, Calif.-based LevitZacks expressed substantial doubtabout Lpath Inc.'s ability to continue as a going concern afterauditing the company's consolidated financial statements for theyears ended Dec. 31, 2007, and 2006.

The auditing firm reported that the company has incurredsignificant cash losses from operations since inception andexpects to continue to incur cash losses from operations in 2008and beyond.

The Troubled Company Reporter reported on June 13, 2008, thatLpath Inc. disclosed a net loss of $5,078,181 on revenue of$13,126 for the first quarter ended March 31, 2008, compared witha net loss of $2,722,598 on revenue of $196,981 in the same periodlast year. At March 31, 2008, the company's consolidated balancesheet showed $6,550,375 in total assets, $3,699,472 in totalliabilities, and $2,850,903 in total stockholders' equity.

INTERSTATE BAKERIES: To Set $5 Million Trust for Unsec. Creditors-----------------------------------------------------------------Interstate Bakeries Corporation, and its debtor-affiliates, have reached a compromise with the Official Committee of Unsecured Creditors, with respect to the Plan funding commitments that the Debtors entered into on September 12, 2008, with an affiliate of Ripplewood Holdings L.L.C., and from Silver Point Finance, LLC, and Monarch Master Funding Ltd, IBC said in a statement.

As a result of the compromise reached with the Creditors Committee on October 3, 2008, the Committee withdrew its objection to the Company's request for the Court's approval of the Commitments, and agreed to support the Company's Plan of Reorganization.

The Debtors' new Plan and Disclosure Statement filed on October 4, 2008, reflect a substantially impaired recovery forprepetition senior secured creditors. The Plan has the support of approximately 53.8% of the prepetition secured debt holders, IBC disclosed.

The compromise reached with the Creditors Committee -- which is subject to definitive documentation -- provides for, among other things, the establishment of a creditors' trust upon IBC's emergence from Chapter 11 for the benefit of the general unsecured creditors.

The Creditors' Trust will be funded through a cash payment of $5 million, with the costs of its administration paid from the Trust assets. The Trust will also also receive rights to pursue certain litigation claims at the expense of the Trust.

Moreover, the Creditors' Trust will potentially receive a cash payment upon a future liquidity event with the payment based on the increase, if any, in value of a 3% equity ownership stake in the reorganized IBC in excess of 150% of the investment equity value paid by the Equity Investor.

"There can be no assurance that the litigation claims or the potential cash payment described above will result in any distributable value for general unsecured creditors," IBC stated.

Going forward, the Company intends to amend the filed Plan of Reorganization and Disclosure Statement to reflect the compromise reached with Creditors Committee, according to the statement.

The Court will convene a hearing on October 30, 2008, to consider approval of IBC's Disclosure Statement. Objections must be filed on or before October 27 at 12:00 p.m.

About IBC

Headquartered in Kansas City, Missouri, Interstate BakeriesCorporation is a wholesale baker and distributor of fresh-bakedbread and sweet goods, under various national brand names,including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) andDrake's(R). Currently, IBC employs more than 25,000 people andoperates 45 bakeries, as well as approximately 800 distributioncenters and approximately 800 bakery outlets throughout thecountry.

The Debtors' filed their Chapter 11 Plan and Disclosure Statementon Nov. 5, 2007. Their exclusive period to file a chapter 11 planexpired on November 8, 2007. On Jan. 25, 2008, the Debtors filedtheir First Amended Plan and Disclosure Statement. On Jan. 30,2008, the Debtors received court approval of the first amendedDisclosure Statement. IBC did not received any qualifyingalternative proposals for funding its plan of reorganization inaccordance with the court-approved alternative proposalprocedures. As a result, no auction was held on Jan. 22, 2008, aswould have been required under those procedures. The deadline forsubmission of alternative proposals was Jan. 15, 2008. A new planfiling deadline was set for June 30, 2008; no plan was filed as ofthat date.

INTERSTATE BAKERIES: To Remove ABA Plan Obligations---------------------------------------------------The United States Bankruptcy Court for the Western District ofMissouri will convene a hearing on October 29, 2008, to consider approval of Interstate Bakeries Corporation and its debtor-affiliates' request to eliminate their obligations with respect to the American Bakers Association Retirement Plan.

As previously reported, the Debtors are required to contribute to the ABA Plan, under their collective bargaining agreements with eight local affiliates of various labor unions:

The Debtors maintained that rejecting the CBAs allows them to liquidate the sizeable post-emergence potential liability that could substantially jeopardize their efforts to restructure as a viable Company.

About IBC

Headquartered in Kansas City, Missouri, Interstate BakeriesCorporation is a wholesale baker and distributor of fresh-bakedbread and sweet goods, under various national brand names,including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) andDrake's(R). Currently, IBC employs more than 25,000 people andoperates 45 bakeries, as well as approximately 800 distributioncenters and approximately 800 bakery outlets throughout thecountry.

The Debtors' filed their Chapter 11 Plan and Disclosure Statementon Nov. 5, 2007. Their exclusive period to file a chapter 11 planexpired on November 8, 2007. On Jan. 25, 2008, the Debtors filedtheir First Amended Plan and Disclosure Statement. On Jan. 30,2008, the Debtors received court approval of the first amendedDisclosure Statement. IBC did not received any qualifyingalternative proposals for funding its plan of reorganization inaccordance with the court-approved alternative proposalprocedures. As a result, no auction was held on Jan. 22, 2008, aswould have been required under those procedures. The deadline forsubmission of alternative proposals was Jan. 15, 2008. A new planfiling deadline was set for June 30, 2008; no plan was filed as ofthat date.

MANTOLOKING CDO: Moody's Chips Ratings on Three Classes of Notes ----------------------------------------------------------------Moody's Investors Service has downgraded and left on review for possible downgrade, the notes issued by Mantoloking CDO 2006-1, Ltd.:

According to Moody's, these rating actions are as a result of the deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities.

Since joining MTI in July 2006, Mr. Tillinghast has served as Corporate Controller and Director of Financial Reporting where he was in charge of preparing and reviewing all SEC financial filings, designing and maintaining all financial reporting disclosures, and helping to implement best accounting practices. He has also served as Assistant Secretary of the Company's Board of Directors since December 2006.

About Mechanical Technology

Headquartered in Albany, New York, Mechanical Technology Inc.(Nasdaq: MKTY) -- http://www.mechtech.com/-- is primarily engaged in the development and commercialization of Mobion(R) off-the-gridportable power solutions through its subsidiary MTI MicroFuelCells Inc. MTI Micro has a team of entrepreneurial businessexecutives, researchers and scientists; a proprietary directmethanol micro fuel cell power system and a number of systemprototypes demonstrating size reductions and performanceimprovements; and related intellectual property.

MTI Micro has received government funding and developed strategicpartnerships to facilitate efforts to achieve commercialization. MTI is also engaged in the design, manufacture, and sale of testand measurement instruments and systems through its subsidiary MTIInstruments Inc.

Going Concern Doubt

As reported in the Troubled Company Reporter on April 4, 2008,PricewaterhouseCoopers LLP, in Buffalo, New York, expressed substantial doubt about Mechanical Technology Inc.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements for the years ended Dec. 31,2007, and 2006. PwC pointed to the company's recurring lossesfrom operations and net capital deficiency.

The company incurred significant losses as it continued to fundthe direct methanol fuel cell product development andcommercialization programs of its majority owned subsidiary, MTIMicroFuel Cells Inc., and had an accumulated deficit of$105,066,000 at June 30, 2008.

MERVYN'S LLC: Wants Civil Actions Removal Period Moved to Feb. 24 -----------------------------------------------------------------Rule 9027 of the Federal Rules of Bankruptcy Procedure sets forth the time periods for the filing of notices to remove claims or causes of action. Rule 9027 provides in pertinent part that:

"If a claim or cause of action in a civil action is pending when a case under the Code is commenced, a notice of removal may be filed only within the longest of (a) 90 days after the order for relief in the Code, (b) 30 days after the entry of an order terminating stay, if the claim or cause of action in a civil action has been stayed under Section 362 of the Code, or (c) 30 days after a trustee qualifies in a Chapter 11 reorganization case but not later than 180 days after the order for relief."

Rule 9006 of the Federal Rules of the Bankruptcy Procedure provides that the Court may, at any time in its discretion:

(a) with or without motion or notice, order the period is enlarged if the request is made before the expiration of the period originally prescribed or as extended by a previous order; or

(b) on motion made after the expiration of the specified period permit the act to be done where the failure to act was the result of excusable neglect.

The time within which Mervyn's LLC and its debtor-affiliates must file motions to remove any pending civil actions will expire on Oct. 27, 2008.

The Debtors ask the U.S. Bankruptcy Court for the District of Delaware to extend the period within which they may file notices of removal of civil actions and proceedings to which they are or may become parties, for approximately 120 days, or through Feb. 24, 2009.

Since the Petition Date, the Debtors have focused on stabilizing their business and ensuring a smooth transition into Chapter 11 while, at the same time, focusing on other time-sensitive aspects of their Chapter 11 cases, says Katherine L. Good, Esq., at Richards, Layton & Finger, PA, in Wilmington, Delaware.

According to Ms. Good, among other significant tasks, in the early weeks of the Bankruptcy cases, the Debtors have:

(i) obtained interim and final approval of their $465,000,000 debtor-in-possession credit facility; and

(ii) obtained approval to conduct store closing sales at 26 of their retail store locations in the United States, which sales are currently in process.

Ms. Good relates the Debtors are continuing to review their files and records to determine whether they should remove any claims or civil causes of action that may be pending in state or federal court to which they might be a party. The Debtors are parties to numerous lawsuits and are still assessing the lawsuits to determine whether removal is warranted, Ms. Good adds.

The Debtors believe the extension will provide sufficient time to allow them to consider, and make decisions concerning, the removal of the Civil Actions, although they reserve the right to request additional extensions if appropriate.

About Mervyn's LLC

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyns has 176 locations in sevenstates. Mervyns stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

The move, the report said, is part of Forever 21's plan to extend its brand to larger stand-alone retail spaces.

Christopher Lee, senior vice president of Forever 21, said his company has been eyeing the assets for many years to meet their vision of getting "a bigger box," the LA Times reports. Forever 21 tried, but was unsuccessful in acquiring Mervyn's in 2004.

If Mervyn's accepts the offer, the deal would bolster Forever 21's presence in California, where most Mervyns stores are located, LA Times' Andrea Chang said. Reports note that Forever 21 intends to keep some of the Mervyn's stores, rebranding them as Forever 21, and close the rest.

At a panel discussion held in June, says Footwear News, Mr. Lee disclosed that his company plans to build larger stores, specifically 90,000-square-feet models in select locations, making it a potential anchor. He said his company is also eyeing stores in South Korea, possible acquisitions in the U.K. and going into Russia.

Mervyn's Spokesman Roy Berces declined to comment on the offer.

About Mervyns LLC

Headquartered in the San Francisco Bay Area, Mervyns LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyns has 176 locations in sevenstates. Mervyns stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites. The company and its affiliates filed for Chapter 11 protection on July 29, 2008, (Bankr. D. Del. Lead Case No.: 08-11586). Howard S. Beltzer, Esq., and Wendy S. Walker, Esq., at Morgan Lewis & Bockius LLP, and Mark D. Collins, Esq., Daniel J. DeFranceschi, Esq., Christopher M. Samis, Esq. and L. Katherine Good, Esq., atRichards Layton & Finger P.A., represent the Debtors in theirrestructuring efforts. Kurtzman Carson Consultants LLC is theDebtors' claims agent. The Debtors' financial advisor is MillerBuckfire & Co. LLC. The U.S. Trustee for Region 3 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Robert Sussman, Esq., Cathy Hershcopf, Esq., and Jay R. Indyke, Esq., at Cooley, Godward, Kronish LLP, represent the Committee in these cases. Mervyn's LLC has estimated assets of$500,000,000 to $1,000,000,000 and estimated debts of $500,000,000to $1,000,000,000 when it filed for bankruptcy.

MERVYN'S LLC: Taps Hewitt Associates as Compensation Consultant---------------------------------------------------------------Mervyn's LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Hewitt Associates LLC as their executive compensation consultant.

The Debtors have selected Hewitt based on its experience in providing advise and analysis with respect to a wide range of employment and compensation related issues. The professionals at Hewitt have served as compensation consultants for many years, and have extensive experience in advising major corporations with regard to issues concerning compensation, benefits, healthcare, retirement plans, and strategic human resources programs, the Debtors relate.

As executive compensation consultants to the Debtors, Hewitt will:

(a) analyze and review executive pay issues;

(b) analyze, review, and assist with the unwinding of the Debtors' long-term incentive plans;

(c) analyze and review all of the Debtors' compensation and benefit plans;

(d) advise the Debtors with regard to the remaining workforce salary and benefit issues, and key employee incentive and retention plans;

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyn's has 176 locations in sevenstates. Mervyn's stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

MERVYN'S LLC: Can Hire FTI Consulting as Financial Advisor----------------------------------------------------------Mervyn's LLC and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the District of Delaware to employ FTI Consulting Inc., as their financial advisor.

FTI is expected to provide consulting and advisory services, specifically:

(a) Assist the Debtors in the preparation of a rolling 13-week cash forecast to be used to evaluate and project liquidity needs;

(b) Advise the Debtors' management on cash conservation measures and assist with implementation as requested;

(c) Advise and assist the Debtors in their view of existing and proposed systems and controls, including but not limited to, cash management;

(d) Advise and assist the Debtors in their preparation, analysis and monitoring of historical, current and projected financial affairs, including without limitation, analyses of cash receipts and disbursements, analyses of cash flow forecasts, analyses of various asset and liability accounts, analyses of any unusual or significant transactions between themselves and any other entities, and analyses of proposed restructuring transactions;

(e) Assist the Debtors in the preparation of their liquidation valuation for a reorganization plan and disclosure purposes;

(f) Advise and assist the Debtors in the assessment of bonus, incentive and severance plans;

(g) Advise and assist the Debtors in reviewing executory contracts and provide recommendations to assume or reject;

(h) Advise and assist the Debtors in reviewing and evaluating the claims and process;

-- the Debtors are authorized to indemnify FTI for prepetition and postpetition services provided for in the Engagement Letter;

-- the Debtors will have no obligation to indemnify FTI or provide contribution or reimbursement for any claim or expense that is either (i) judicially determined to have resulted primarily from the willful misconduct, gross negligence, bad faith or self-dealing, or (ii) settled prior to a judicial determination as to FTI's willful misconduct, gross negligence, bad faith or self-dealing, but determined by the Court to be a claim or expense for which FTI will not receive indemnity; and

-- if, before the earlier of (i) the entry of an order confirming a Chapter 11 plan and (ii) the entry of an order closing the Debtors' Chapter 11 cases, FTI believes that it is entitled to the payment of any amounts by the Debtors on account of the Debtors' indemnification, contribution or reimbursement obligations under the Engagement Letter, FTI must file an application with the Court, and the Debtors may not pay the amount to FTI before the entry of an order approving the payment.

Robert J. Duffy, senior managing director at FTI Consulting, Inc. assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b), in that FTI:

(i) is not a creditor, equity security holder or insider of the Debtors; and

(ii) is not and was not within two years before the Petition Date, a director, officer, or employee of the Debtors.

About Mervyn's LLC

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyn's has 176 locations in sevenstates. Mervyn's stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

MERVYN'S LLC: Court OKs Traxi LLC as Litigation Financial Advisor----------------------------------------------------------------Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware authorized Mervyn's LLC and its debtor-affiliates to employ Traxi LLC as their litigation financial advisor.

Traxi is expected to:

(a) Analyze the historical financial data of the Debtors and perform solvency analysis for various points of time;

(c) Analyze the financial ramifications of certain transactions by the Debtors;

(d) Perform or review valuations, as appropriate and necessary, of the Debtors' assets and liabilities;

(e) Evaluate potential fraudulent conveyances and preferences;

(f) Perform other necessary analyses; and

(g) Prepare reports of their findings.

Traxi will be paid based on its hourly rates ranging from $125 to $275. The firm will also be paid reimbursed for its reasonable expenses.

The Debtors will indemnify and hold harmless Traxi and any of its directors, members, officers, partners, agents, employees and controlling persons for claims arising from the engagement. However, the Debtors have no obligation to claim or expense resulting from willful misconduct or negligence.

Perry M. Mandarino, senior managing director of Traxi LLC, assured the Court that his firm does not represent any interest materially adverse to the Debtors.

Mr. Mandarino has filed a list of parties-in-interest that his firm has represented, currently represents, or may in the future represent in matters unrelated to the Debtors, a copy which is available for free at:

The judge also approved the provisions of the Engagement Letter provided that, among other things:

-- Traxi will not be entitled to indemnification, contribution or reimbursement pursuant to the Engagement Letter for services, unless approved by the Court;

-- the Debtors will have no obligation to indemnify Traxi, or provide contribution or reimbursement for any claim or expense that is either (i) judicially determined to have arisen from Traxi's gross negligence or willful misconduct, (ii) for a contractual dispute in which the Debtors allege the breach of Traxi's contractual obligations unless the Court determines that indemnification, contribution or reimbursement would be permissible, or (iii) settled prior to a judicial determination as to Traxi's gross negligence or willful misconduct, but determined by the Court to be a claim or expense for which Traxi will not receive indemnity, contribution or reimbursement under the terms of the Engagement Letter; and

-- if, before the earlier of the entry of an order confirming a Chapter 11 plan, and in the entry of an order closing the Debtors' Chapter 11 cases, Traxi believes that it is entitled to the payment of any amounts by the Debtors on account of the Debtors' indemnification, contribution or reimbursement obligations under the Engagement Letter, Traxi must file an application with the Court, and the Debtors may not pay any amount to Traxi before the entry of an order approving the payment; and

-- any limitation on liability or any amounts to be contributed by the parties to the Engagement Letter under the terms of the Engagement Letter will be eliminated.

Court Strikes Objections

Prior to the Court's approval of the request, two entities filed responses to the Debtors' application to employ Traxi as financial advisor:

Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, in Wilmington, Delaware, counsel for the Cerberus entities, said the timing of Traxi's employment to prepare a report to support the Debtors' pre-determined conclusion that Mervyn's LLC was insolvent as a result of the September 2, 2004 acquisition from Target is backwards.

Ms. Mumford pointed out that 35 days after the bankruptcy cases were filed and only 12 days after special litigation counsel was contacted, the Debtors rushed to file a complaint against the Cerberus entities and Lubert-Adler entities, among others, seeking to avoid and recover certain alleged fraudulent transfers in connection with the 2004 acquisition.

In its application, the Debtors seek to employ Traxi to analyze historical financial data, perform a solvency analysis, analyze cash flow projections and financial ramifications of certain transaction by the Debtors. According to Ms. Mumford, the Debtors have conducted investigation before allegations.

"The obvious translation of this statement is that the Debtors simply do not know whether they have a claim , and now that they have grabbed the headlines, and before they get in too deep, they would like to see if they actually have anything to prosecute." Ms. Mumford contended.

In response to the objections, counsel for the Debtors, Mary E. Augustine, Esq., at Bayard, PA, in Wilmington, Delaware, argued that, contrary to the statements made by the Cerberus entities and the Lubert-Alder entities, Mervyn's did not 'shoot first and ask questions later.'

According to Ms. Augustine, Traxi has already performed work prior to the filing of the complaint and will perform work in the future as and when the litigation progresses.

Judge Gross overruled the objections at the hearing held September 25, 2008, saying that since the objectors are not "objecting" to the retention, he doesn't think he should require, at that point, a description of what counsel's work is going to be. "I'm not going to require the clarification you've requested," the judge told the objectors' lawyers.

About Mervyn's LLC

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyn's has 176 locations in sevenstates. Mervyn's stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

MERVYN'S LLC: Wants Ernst & Young to Provide Tax Services---------------------------------------------------------Mervyn's LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Ernst & Young LLP as their tax services provider.

The Debtors seek to retain Ernst & Young because of its knowledge of their financial affairs and its extensive experience and excellent reputation for providing high quality services to large and complex companies including debtors and creditors in bankruptcy reorganizations and other restructuring.

According to the Debtors, they have employed Ernst & Young for several years to provide (i) tax return preparation services, (ii) miscellaneous tax advisory services and (iii) compensationand employee benefits services.

Pursuant to the parties' engagement letter, Ernst & Young will perform these services for the Debtors:

(i) (a) prepare the Debtors' U.S. federal income tax return, Form 1065, for the short year Nov. 28, 2007 through Feb. 2, 2008, (b) prepare the Debtors' state and local income and franchise tax returns, and (c) perform the required calculations under the Uniform Capitalization Rules. The returns to be prepared by Ernst & Young in accordance with the Statement of Work are due on Nov. 15, 2008 -- Business Return Preparation Services.

(ii) provide routine tax advise and assistance concerning issues as requested by the Debtors from time to time -- Routine On-Call Advise; and

(iii) represent the Debtors in the assessment of appeals, discussions, negotiations or informal hearings with representatives of the relevant taxing jurisdictions -- Property Tax Appeal Services.

Ernst & Young will also provide 12 hours per quarter of administrative support to update quarterly property reports as required by the Debtors.

The Debtors relate that Ernst & Young's services will be limited to the discrete tax services provided in the Engagement Letter and will complement, and not duplicate, the services rendered by the other professionals retained in their Chapter 11 cases. A full-copy of the Tax Services Agreement can be accessed for free at:

(a) for Business Return Preparation Services at its standard hourly rates with an overall estimated fee of $115,000 to $125,000 for the tax return preparation and between $8,000 and $9,000 for the UNICAP calculation,

(b) for Routine On-Call Advise at its standard hourly rates discounted by 30% and subject to an overall cap of $10,000, and

(c) for Property Tax Appeal Services:

-- with respect to Arizona, California, Idaho, Nevada, Utah and Texas a fee equal to 35% of the "Net Tax Savings," and

-- with respect to New Mexico and time in excess of 12 hours per quarter spent by Ernst & Young updating the quarterly property reports, at its standard hourly rates.

The Debtors will reimburse Ernst & Young for the actual reasonable expenses it may incur in considering or responding to discovery requests or participating as a witness or otherwise in any legal, regulatory or other proceeding.

As of July 29, 2008, the Debtors owe Ernst & Young $28,400 for prepetition services. The Debtors relate that upon approval of Ernst & Young's retention, the firm will waive its rights to receive any fees incurred prior to the Petition Date. The Debtors add that they paid $170,731 to Ernst & Young within 90 days preceding the Petition Date.

Jeffrey Franco, a partner of Ernst & Young LLP, assures the Court that his firm:

(a) is a disinterested person within the meaning of Section 101(14) of the Bankruptcy Code;

(b) does not hold or represent an interest adverse to the Debtors' estates; and

(c) has no material connection to the Debtors, their creditors, or their related parties.

About Mervyn's LLC

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyn's has 176 locations in sevenstates. Mervyn's stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

MERVYN'S LLC: Wants Deloitte as Bankruptcy Reporting Advisors -------------------------------------------------------------Mervyn's LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Deloitte Financial Advisory Services LLP as their bankruptcy reporting advisors, nunc pro tunc to September 2, 2008.

The Debtors have selected Deloitte FAS because of the firm's experience in providing bankruptcy reporting advisory services to large and sophisticated companies in Chapter 11 reorganizations.

As the Debtors' reporting advisors, Deloitte FAS will:

(a) assist in the development of Statements of Financial Affairs;

(b) assist in the development of Schedules of Assets and Liabilities; and

(c) assist with claims reconciliation with respect to the Schedules.

The Debtors relate that they require the assistance of outside professionals in preparing their Schedules and Statementsprior to the October 27, 2008 due date. The Debtors note that they have 175 retail stores, more than 18,000 employees and thousands of vendors and creditors. The preparation and the reconciliation of tens of thousands of proofs of claim will require a significant time commitment, the Debtors add.

The Debtors assure Court that the services Deloitte FAS will render will not duplicate the services provided by Kurtzman Carson Consultants LLC, their noticing and claims agent. According to the Debtors, Kurtzman Carson is an agent of the Court for purposes of providing notice to the appropriate partiesand acts in the role of "official recorder" of the claims filed. Moreover, the services to be provided by Deloitte FAS are beyond the scope of the financial advisory services to be provided by FTI Consulting, Inc. and the investment banking services being provided by Miller Buckfire & Co., LLC., the Debtors relate.

Pursuant to the terms of an Engagement Letter, the Debtors propose to pay Deloitte FAS based on its hourly rates:

Deloitte FAS has agreed to reduce its rate to a maximum of $265 per hour during the duration of its engagement, the Debtors note.

Deloitte will also be reimbursed for any direct expenses incurred in connection with its retention and the performance of the services in the Engagement Letter.

Within 90 days prior to the Petition Date, the Debtors paid $95,000 to Deloitte Consulting, an affiliate of Deloitte FAS for prepetition services. As of the Petition Date, the Debtors owe approximately $286,000 to Deloitte Consulting. The Debtors also paid Deloitte & Touche LLP, an affiliate of Deloitte FAS, $44,000 within the 90-day period prior to the Petition Date. Deloitte Tax LLP, also an affiliate of Deloitte FAS, provided services to the Debtors prepetition but received no payment.

Pursuant to the Engagement Letter, the Debtors will indemnify and hold harmless Deloitte FAS, its subcontractors, and their personnel except for claims resulting from bad faith or intentional misconduct.

Arthur T. Perkins, Jr., a director of Deloitte Financial Advisory Services LLP, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b).

Deloitte FAS or its affiliates has provided or is currently providing services in matters unrelated to the Debtors' Chapter 11 cases. The list of the entities to which Deloitte FAS provides services can be accessed for free at:

Headquartered in the San Francisco Bay Area, Mervyn's LLC --http://www.mervyns.com/-- provides a mix of top national brands and exclusive private labels. Mervyn's has 176 locations in sevenstates. Mervyn's stores have an average of 80,000 retail squarefeet, smaller than most other mid-tier retailers and easier toshop, and are located primarily in regional malls, communityshopping centers, and freestanding sites.

MGM MIRAGE: Must Raise $1.2BB to Complete CityCenter Financing--------------------------------------------------------------Tamara Audi at The Wall Street Journal reports that MGM Mirage needs to raise about $1.2 billion to complete the financing of its CityCenter project in Las Vegas.

As reported in the Troubled Company Reporter on Oct. 7, 2008, MGM Mirage said that CityCenter, its joint development project with Dubai World, completed the first phase of its $3.0 billion financing package by securing a $1.8 billion senior bank credit facility. The facility matures in April 2013 and is expected to be increased to a total amount of $3.0 billion as additionalcommitments are received. CityCenter has received additional signed commitment letters totaling in excess of $500 million, which commitments are expected to be added to the facility once completed. MGM Mirage and Dubai World continue to work with additional lenders and will seek the remaining commitment amounts through a syndication process beginning on Oct. 7, 2008. The gross project budget consists of $9.3 billion of construction costs (including capitalized interest), $1.7 billion of land, $0.2 billion of preopening expenses, and $0.1 billion of intangible assets. CityCenter is scheduled to be completed in December 2009.

According to WSJ, MGM Mirage is working to secure 41.2 billion in financing to round out the $3 billion needed to complete the project. Jim Murren, MGM Mirage's chief operating officer and president, said that he hopes to have the remaining funds committed by Oct. 31, WSJ says.

WSJ relates that Banc of America Securities gambling analyst Shaun C. Kelley said that the news "a significant vote of confidence from the banks" in an investors note and that the funding news "helps reduce some of the increasing financing uncertainty around MGM."

About MGM Mirage

Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) --http://www.mgmmirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippiand Michigan, and has investments in three other properties inNevada, New Jersey and Illinois.

* * *

As reported in the Troubled Company Reporter on Sept. 5, 2008,Standard & Poor's Ratings Services revised its rating outlook on Las Vegas-based MGM MIRAGE to negative from stable. Ratings on the company, including the 'BB' corporate credit rating, were affirmed.

Mr. Esler is asking the court to freeze $12 million in cash belonging to Mr. Sapp, to keep it available to creditors, the report says.

"I think the executives at MILA knew by 2004 that this bubble was bursting and did their best to take out as much money as they could before it became obvious to everyone else," says Brian Esler, who represents the bankruptcy trustee in the suit, the report says.

The suit claims that Mr. Sapp, who owned about 90 percent of MILA, paid himself more than $10 million in dividends in 2004 and 2005, according to the report. The suit also alleges he took $11.5 million in salary for each of those years, though "by March 2005, MILA was already delaying payments, even to important customers, to conserve cash." The trustee's suit also claims that Mr. Sapp damaged MILA -- and its creditors -- in other ways.

According to the report, the suit claims Mr. Sapp "surreptitiously seized" the mortgage software MILA developed and had another of his companies bill MILA for using it; charged MILA exorbitant amounts for his private yacht and business jets; and, in a "theft of corporate opportunity," created separate companies to own a four-story office building and a parking lot that were leased to MILA, rather than having MILA buy the properties.

Mr. Sapp's attorney, Jack Cullen, Esq., said: "We consider the claims nonsense. We don't think they are founded in law or fact."

According to the report, Mr. Sapp did not return a call to his Hunts Point home.

According to the report, the suit also made these allegations:

1. To support its claim that MILA was insolvent more than two years before its 2007 collapse, the suit cited MILA's eroding capital base and "the alarming growth in bad loans it was required to repurchase" from the institutional buyers of its securitized mortgages: $37.7 million in 2004, up 12-fold from 2002.

2. The losses on repurchased loans weren't properly reflected on its books, and that MILA's deteriorating margins were masked by the rising volume of loans.

3. The company that owned Mr. Sapp's 130-foot yacht billed MILA $395,374 over two years -- although "MILA used that yacht only twice for asserted business reasons."

As more mortgages went bad, Mr. Groshong says creditors' claims have ballooned to nearly $2 billion.

When the Debtor filed for protection from its creditors, it listed total assets of $7,886,962, and total liabilities of $174,730,413.

MONROE CENTER: To File Plan Within Next 30 Days, Says Developer---------------------------------------------------------------According to an article by Carla Baranauckas which appeared in the Theater section of the New York Times last Friday, Dil Hoda, who together with Gerry Saddel bought the Monroe Arts Center in 1989, says that "Within the next 30 days we'll file a plan, and that will basically spell out how we intend to come out from under the court protection and out of the Chapter 11." "And we have every intention of coming out of Chapter 11 and continuing what we're doing here."

Monroe Center, LLC, the owner of the Monroe Arts Center which houses the Mile Square Theater in Hoboken, New Jersey, filed for Chapter 11 on Sept. 10.

Citing documents filed with the U.S. Bankruptcy Court by Monroe Center LLC's mortgage holder, Principal Commercial Funding, the New York Times article says that Principal began foreclosure proceedings in New Jersey Superior Court in April to collect on a $21 million mortgage, and after Monroe Center's bankruptcy filing, filed a petition with the bankruptcy court seeking to have all rents from tenants of the Monroe Center paid directly to it.

Based in Hoboken, N.J., Monroe Center LLC owns the Monroe Arts Center in Hoboken, N.J. The company filed for Chapter 11 relief on Sept. 10, 2008 (D. N.J. 08-27203). Joseph Markowitz, Esq., at Markowitz, Gravelle & Schwimmer, represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed debts of $10 million to $50 million. The Debtor did not indicate the value of its assets at the time of filing.

NEONODE INC: Registration of 6,400,000 Shares Takes Effect ---------------------------------------------------------Neonode Inc. disclosed in a Securities and Exchange Commission filing that its Registration Statement, dated Sept. 5, 2008, regarding the sale of its shares by shareholders, has taken effect.

Neonode Inc. filed on Sept. 5, with the Commission a prospectus that relates to the resale of:

(i) 1,640,467 shares of common stock, $0.001 par value per share; and

(ii) 4,746,013 shares of Common Stock issuable upon the exercise of warrants.

The Company noted that selling stockholders may sell the shares ofcommon stock subject to the prospectus from time to time and mayalso decide not to sell all the shares they are allowed to sellunder the prospectus. Selling stockholders will act independentlyof the Company in making decisions with respect to the timing,manner and size of each sale.

Neonode Inc. (Nasdaq: NEON) -- http://www.neonode.com/-- is a Swedish mobile communication company that specializes in opticalfinger based touch screen technology. The company designs anddevelops mobile phones under its own brand and licenses itspatented touch screen technologies, zForce(TM) and neno(TM) tothird parties. Neonode USA, which is based in San Ramon, Calif.,markets Neonode's products within North America, Latin America andChina and is the exclusive licensor of the Neonode IntellectualProperty.

As reported in the Troubled company Reporter on May 29, 2008,Neonode Inc.'s consolidated balance sheet at March 31, 2008,showed total assets of $13.9 million and total liabilities of$23.4 million, resulting in a roughly $9.4 million of totalstockholders' deficit.

Going Concern Doubt

BDO Feinstein International AB, in Stockholm, Sweden, expressedsubstantial doubt about Neonode Inc.'s ability to continue as agoing concern after auditing the company's consolidated financialstatements for the year ended Dec. 31, 2007. the auditing firmpointed to the company's recurring losses, negative cash flowsfrom operations, and working capital deficiency.

NEPTUNE CDO: Moody's Lowers Ratings on Three Note Classes to Ca---------------------------------------------------------------Moody's Investors Service has downgraded and placed on review for possible downgrade the notes issued by Neptune CDO III, Ltd.:

According to Moody's, the rating actions are a result of the deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities.

NEPTUNE INDUSTRIES: Delays Filing of Annual Report on Form 10-KSB -----------------------------------------------------------------Neptune Industries disclosed on Sept. 29, 2008, that it is unable to timely file its Form 10-KSB for the fiscal year ended June 30, 2008 with Securities and Exchange Commission.

Certain information needed to complete the financial statements could not be obtained in a timely fashion to provide to the independent auditors, who have been unable to complete the audit of the financial statements for the fiscal year ended June 30, 2008.

The audit is underway and is expected to be completed during the week of October 6, 2008, and the Form 10-KSB will be filed prior to the expiration of the additional 15-day period.

As reported in the Troubled Company Reporter on Oct. 19, 2007,Berman Hopkins Wright & Laham, CPAs and Associates, LLP, expressedsubstantial doubt about Neptune Industries Inc.'s ability tocontinue as a going concern after auditing the company'sconsolidated financial statements for the year ended June 30,2007. The auditing firm pointed to the company's recurring lossesfrom operations and recurring deficiencies in working capital.

Neptune Industries' consolidated balance sheet at June 30, 2008, showed $1,653,588 in total assets and $3,466,245 in totalliabilities, resulting in a $1,634,654 total stockholders'deficit.

At March 31, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $969,550 in total current assetsavailable to pay $1,481,953 in total current liabilities.

The company reported a net loss of $465,388, on sales of $158,493,in the third quarter ended March 31, 2008, compared with a netloss of $853,431, on sales of $203,379, in the same period in2007.

NEWBURY STREET: Credit Quality Slide Cues Moody's Ratings Cut-------------------------------------------------------------Moody's Investors Service has downgraded the ratings of four classes of notes issued by Newbury Street CDO, Ltd., and left on review for possible further downgrade the rating of one of these classes of notes as:

Newbury Street CDO, Ltd. is a collateralized debt obligation backed primarily by a portfolio of structured finance securities. On March 4, 2008, the transaction experienced an event of default caused by a failure of the Class A Sequential Pay Ratio to be greater than or equal to the required amount set forth in Section 5.1(i) of the Indenture dated March 8, 2007. That event of default is continuing.

The rating actions taken reflect continuing deterioration in the credit quality of the underlying portfolio and the increased expected loss associated with the transaction. Losses are attributed to diminished credit quality on the underlying portfolio.

As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, the Controlling Class may be entitled to direct the Trustee to take particular actions with respect to the Collateral. The severity of losses may depend on the timing and choice of remedy to be pursued by the Controlling Class. Because of this uncertainty, the rating of the Class A-1 Notes issued by Newbury Street CDO, Ltd. is on review for possible further action.

The company filed Post-Effective Amendment No. 3 to request thederegistration of 250,000 shares of common stock, par value $0.01 per share, that were issuable upon the exercise of 250,000 common stock purchase warrants. The Warrants had been issued to Auramet Trading, LLC in connection with a $1,000,000 loan advanced to the company on May 31, 2006, and added to the principal amount of a $3,900,000 secured bridge loan made by Nedbank Limited dated Nov. 8, 2005. The Warrants expired on 5:00 p.m. (Central time) on May 31, 2008. As a result of the expiration of the Warrants, the Warrant Shares are no longer available.

The company also filed Post-Effective Amendment No. 3 to update certain financial and other information contained in the prospectus in accordance with the Securities Act of 1933.

Based in Tucson, Arizona, Nord Resources Corporation (Pink Sheets:NRDS) -- http://www.nordresources.com/-- is an emerging copper producer, which controls a 100% interest in the Johnson Camp SX-EWcopper project in Arizona. Nord's near term objective is toresume mining and leaching operations at the Johnson Camp mine,which has been on care and maintenance status since August 2003.Nord has decided to proceed with its mine plan bases on an updatedfeasibility study that was completed in October 2005, subject toraising sufficient financing.

Going Concern Doubt

On March 26, 2008, Mayer Hoffman McCann PC, in Denver, Colorado,expressed substantial doubt about Nord Resources Corporation'sability to continue as a going concern after auditing thecompany's consolidated financial statements as of the years endedDec. 31, 2007, and 2006. The auditing firm company reported thatthe company incurred a net loss of $2.5 million and $6.2 millionduring the years ended Dec. 31, 2007, and 2006.

The company's continuation as a going concern is dependent uponits ability to generate sufficient cash flow to meet the company'sobligations on a timely basis, to produce copper at a level whereit can become profitable, to pay off existing debt and providesufficient funds for general corporate purposes.

Liquidity and Financial Resources

Nord Resources Corporation's balance sheet at March 31, 2008,showed total assets of $ 29.2 million and total liabilities of$32.3 million, resulting in shareholders' deficit of roughly$3.1 million.

NOVELOS THERAPEUTICS: Deregisters Shares for Resale ---------------------------------------------------Novelos Therapeutics, Inc. has filed with the Securities and Exchange Commission filing a Post-Effective Amendment No. 1 to the Registration Statement dated June 3, 2008. The Registration Statement was declared effective on June 23, 2008, and registered the resale, from time to time, of 6,888,413 shares of the Company's common stock, par value $0.00001 per share.

The Shares were registered to permit resales of the Shares by the selling stockholders, as named in the Registration Statement, upon the exercise of warrants to purchase Shares that had been acquired in connection with the Company's private placements in 2005. All of the warrants expired unexercised on Aug, 11, 2008, thus no Shares were acquired for resale by the selling stockholders.

The Post-Effective Amendment No. 1 to the Registration Statement was filed deregister all of the Shares. The Company is seeking to deregister the Shares because its obligation to keep the Registration Statement effective pursuant to the terms of its registration rights agreements with the selling stockholders terminated upon the expiration of the Warrants.

Headquartered in Newton, Massachusetts, Novelos Therapeutics Inc.(OTC BB: NVLT) -- http://www.novelos.com/-- is a biopharmaceutical company commercializing oxidized glutathione-based compounds for the treatment of cancer and hepatitis. NOV-002, the lead compound currently in Phase 3 development for lungcancer under a Special Protocol Assessment (SPA) and Fast Track,acts together with chemotherapy as a chemoprotectant and animmunomodulator. NOV-002 is also in Phase 2 development forchemotherapy-resistant ovarian cancer and early-stage breastcancer.

At June 30, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $5,699,642 in total current assetsavailable to pay $8,238,837 in total current liabilities. The company reported a net loss of $4,676,638, on revenue of $45,676 for the second quarter ended June 30, 2008.

Going Concern Doubt

As reported in the Troubled Company Reporter on April 18, 2008,Worcester, Mass.-based Stowe & Degon expressed substantial doubtabout Novelos Therapeutics Inc.'s ability to continue as agoing concern after auditing the company's financial statementsfor the years ended Dec. 31, 2007, and 2006. The auditing firmstated that the company has incurred continuing losses in thedevelopment of its products and that additional funding will berequired for the company to meet its obligations for the followingyear.

The company's ability to continue as a going concern is dependenton whether it can obtain capital (through the sale of equity anddebt securities and through collaborative arrangements withpartners) to fund its development activities. If the company isunable to obtain additional capital through these sources, it mayhave to seek other sources of capital or reevaluate its operatingplans, including slowing or stopping the Phase 3 clinicaldevelopment of its lead drug candidate, NOV-002.

NOWAUTO GROUP: Delays Filing of Annual Report on Form 10-K----------------------------------------------------------NowAuto Group, Inc. disclosed in a Securities and Exchange Commission filing that it was unable to timely file its annual report on Form 10-K because substantial additions to the supporting documents are required by its auditor. The short notice of these changes have made an extension necessary.

About NowAuto Group

Based in Tempe, Ariz., NowAuto Group Inc. (OTC BB: NAUG) --http://www.nowauto.com/-- operates three buy-here-pay-here used vehicle dealerships in Arizona. The company manages all of itsinstallment finance contracts and purchases installment financecontracts from a select number of other independent used vehicledealerships. Through its subsidiary, NavicomGPS Inc., the companymarkets GPS tracking devices, primarily to independent usedvehicle dealerships.

Going Concern Doubt

As reported in the Troubled Company Reporter on Oct. 5, 2007,Moore & Associates Chartered, in Las Vegas, Nevada, expressedsubstantial doubt about NowAuto Group Inc.'s ability to continueas a going concern after auditing the company's consolidatedfinancial statements for the year ended June 30, 2007, and 2006. The auditing firm pointed to the company's recurring losses.

NowAuto Group Inc.'s consolidated balance sheet at March 31, 2008,showed $7,559,489 in total assets and $8,488,084 in totalliabilities, resulting in a $928,595 total stockholders' deficit.

At March 31, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $3,373,924 in total current assetsavailable to pay $3,611,848 in total current liabilities.

The company reported a net loss of $344,482 on revenue of$1,300,443 for the third quarter ended March 31, 2008, comparedwith a net loss of $747,121 on revenue of $1,662,846 in the sameperiod ended March 31, 2007.

NXT ENERGY: Annual Shareholders' Meeting Slated for October 23--------------------------------------------------------------NXT Energy Solutions Inc. disclosed in a Securities and Exchange Commission filing that it will hold its annual and special meeting of holders of common shares at the Calgary Petroleum Club at 319 - 5th Avenue S.W., Calgary, Alberta, Canada at 3:00 pm (Calgary time) on Oct. 23, 2008.

Agenda of the meeting:

-- to receive and consider the audited financial statements of the Corporation for the year ended Dec. 31, 2007, and the report of auditors;

-- to elect directors of the Corporation for the ensuing year;

-- to appoint auditors of the Corporation for the ensuing year at a remuneration to be determined by the Board of Directors;

-- to consider and, if thought appropriate, to pass an ordinary resolution approving the stock option plan of the Corporation; and

-- to transact such other business as may be properly brought before the Meeting.

Shareholders who are unable to attend the Meeting or any adjournment are requested to complete, date and sign the enclosed instrument of proxy and return it to:

at least 24 hours (excluding Saturdays, Sundays and statutory holidays) before the Meeting or any adjournment.

The Board of Directors has fixed Sept. 18, 2008 as the record date for the determination of Shareholders entitled to receive notice of and to vote at the Meeting and at any adjournment thereof.

About NXT Energy Solutions

Based in Calgary, Alberta, Canada, NXT Energy Solutions Inc. (OTC BB: NSFDF; TSX-V: SFD) -- http://www.nxtenergy.com/-- is in the business of providing wide-area airborne exploration services to the oil and gas industry. The company utilizes its proprietary Stress Field Detection Survey System to offer its clients a unique service to rapidly identify sub-surface structures with reservoir potential in sedimentary basins with no environmental impact. The value of the service is providing clients with an efficient, cost effective method of surveying large tracts of land and delivering an inventory of SFD prospects with high potential.

Going Concern Doubt

As reported in the Troubled Company Reporter on Aug. 28, 2008,Energy Exploration Technologies Inc. said is in the early stage ofcommercializing its SFD technology. Its ability to generatecash flow from operations will depend on its ability to serviceits existing clients and develop new clients for its SFD services. Management also recognizes that this early commercialization phasecan last for several years. In addition, Energy Exploration saidthat consistent with this early stage of commercialization thecompany has a significant economic dependency on a few customers.

According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008, Washington Mutual Inc., which was seized by federal regulators on September 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase, and Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on September 8, 2008.

PHS GROUP: Grunberg Oil's $2.4MM Bid Declared as Top Offer----------------------------------------------------------Bill Rochelle of Bloomberg News reports that the Chapter 11 trustee of PHS Group, Inc., and its debtor-affiliates informed the U.S. Bankruptcy Court for the Eastern District of Kentucky that Grunberg Oil, LLC, has emerged as the top bidder at an auction for the sale of the assets of PHS Group and affiliates The Somerset Refinery, Inc., and Somerset Oil, Inc. Grunberg has offered $2.4 million for the assets, Mr. Rochelle says.

Headquartered in Lexington, Kentucky, PHS Group, Inc.'s primarybusiness is the operation of affiliate Somerset Refinery, Inc.,which has a processing capability of 5,500 barrels of oil per day. The refinery primarily produces gasoline at octanes of 87, 89, 91,diesel fuel and heavy fuel oils for homes and industry furnaces.

The company posted a net loss of $1,623,354 on total revenues of $2,902,219 for the year ended June 30, 2008, as compared with a net loss of $2,889,829 on total revenues of $2,477,469 in the prior year.

Management Statement

The company has sustained recurring net losses and negative cash flows from operations for several years. As of June 30, 2008, cash and cash equivalents were $885,988, accounts receivable were $387,224 and current liabilities were $869,235, resulting in a net liquid asset amount of $403,977. These factors raise substantial doubt about the company's ability to continue as a going concern.

During the latter part of fiscal year 2008, the company implemented plans to reduce costs and to streamline operations in an effort to reduce net losses. This has resulted in an increase in gross profit and simultaneous decreases in operating expenses, thereby reducing losses substantially, particularly in the third and fourth quarters of fiscal year 2008. The management believes that the recent introduction of several new products, along with new and on-going customer relationships, will generate additional revenues, which are required in order for the company to achieve profitability. If these additional revenues are not achieved on a timely basis, the company will be required and is prepared to implement further cost reduction measures, as necessary.

The company has incurred quarter to quarter operating losses during its recent efforts to develop current products including endoscopes, image couplers, beam splitters, thin film coatings, night vision and micro-optic lenses, prisms and assemblies for various applications and utilizing a number of proprietary and patent-pending technologies including Lenslock endoscope and micro-precision lens technologies. Management expects that such operating losses will continue through fiscal year 2009, and until sales increase to breakeven and profitable levels. Management also believes that the opportunities represented by these products have the potential to generate sales increases to achieve breakeven and profitable results. The company will continue its review of other expense areas to determine where additional reductions in discretionary spending can be achieved. There can be no assurance that the company's operating plans will be successful, and if so required, that the company will be successful in obtaining the capital necessary to continue ongoing operations.

During the past year, the introduction of several new products, along with new and on-going customer relationships, has resulted in significant revenue growth. The company believes that with continued promotion, these opportunities have the potential to continue the general trend of increasing revenues, which, along with enhanced operations are required in order for the company to achieve profitability.

Balance sheet

At June 30, 2008, the company's balance sheet showed $2,281,637 in total assets, $879,539 in total liabilities, and $1,402,098 in total stockholders' equity.

The company's consolidated balance sheet at June 30, 2008, also showed liquidity with $1,918,392 in total current assets available to pay $869,235 in total current liabilities.

Precision Optics Corporation, Inc. (OTC BB: POCI.OB) -- http://www.poci.com-- designs, develops, manufactures and sells specialized optical systems and components and optical thin-film coatings. The company's products include endoscopes, image couplers, beamsplitters, and adapters; Lenslock endoscopes; ultra-small lenses, prisms, and assemblies; optical medical products; industrial cavities and interiors, and borescopes for industrial applications; thin film coatings for a range of optical applications; and night vision optics, such as eyepiece lens. recision Optics markets and sells its endoscopes to original equipment manufacturers. The company was founded in 1982 and is based in Gardner, Mass.

PRINCETON OFFICE: Court Okays Norris as Bankruptcy Counsel----------------------------------------------------------The U.S. Banrkuptcy Court for the District of New Jersey granted Princeton Office Park LP permission to employ Norris, McLaughlin and Marcus, PA, as bankruptcy counsel.

The Firm will represent the Debtor in its Chapter 11 case, including court appearances, research, preparation, and drafting of pleadings and other legal documents, hearing preparation, and related work, negotiations, and advice with respect to the Debtor's Chapter 11 case.

Norris McLaughlin will charge $115 to $515 an hour for its services, specifically:

REEVES-WILLIAMS LLC: In Default on $5.3 Million of Debt -------------------------------------------------------Southaven-based developer and builder Reeves-Williams LLC is in default on payment for debts and obligations related to $5.3 million worth of construction deeds of trust and assignments of rents and leases dating back to March 17, 2006, the Daily News (Memphis) reported Monday. The three loans in default are related to lots and homes in the Franklin Farms Planned Development in Cordova, Tenn.

Franklin Farms PD is near Houston Levee Road and U.S. Highway 64 in Cordova. The Daily News says Reeves-Williams developed the lots after buying 46.55 acres in the subdivision in 2003 from trustee Cary R. Califf for $1.3 million.

According to Daily News, the company is in default on three trust deeds related to the subdivision; all three loans are through AmSouth Bank with FMLS Inc. as trustee:

1. The first was a $4.5 million construction loan dated March 17, 2006, for 72 lots in Franklin Farms;

2. The second was a $716,576 construction loan dated Aug. 9, 2006, for six lots and one home in Franklin Farms; the real property in default under this loan is 10230 Old Well Terrace in Cordova; and

3. The third was a $112,796 construction loan dated Dec. 6, 2007, for one lot and one home in Franklin Farms; the real property in default under this loan is 2554 Plum Creek Drive in Cordova.

According to Daily News, all properties related to these defaults will be sold at a substitute trustee's sale Oct. 27 at 11 a.m. on the southwest corner of the Adams Avenue entrance to the Shelby County Courthouse.

Headquartered in Southaven, Miss., Reese-Williams LLC was once Mississippi's largest homebuilder. Reeves-Williams began in 1967 as a partnership between Jon Reeves and Robert Williams. Red Bank, New Jersey-based Kalian Co. LLC bought the homelender in 2000. Reeves-Williams closed all of its sales offices in May, 2008, blaming the mortgage crisis and poor sales.

The Firm will, among other things, assist the Debtors with preparing for and filing the bankruptcy, including developing cash budgets and developing DIP financing structures, and assist the Debtors with preparing its statements, schedules, and monthly operatings reports.

The Firm will charge the Debtors $250 to $350 per hour for its services.

Ted Gumienny, the president of the Firm, assured the Court of the Firm's disinterestedness and that the Firm doesn't represent any interest adverse to the Debtors or the estate.

The company and its two affiliates filed for Chapter 11 protection on Sept. 5, 2008 (Bankr. D. Del. Case No. 08-12064). Richard W. Riley, Esq., at Duane Morris LLP represents the Debtors in their restructuring efforts. Kurtzman Carson Consulting, LLC, serves as the Debtors' Claims, Noticing and Balloting Agent. When the Debtors filed for protection from their creditors they listed estimated assets between $10 million and $50 million and estimated debts between $10 million and $50 million.

REHRIG INTERNATIONAL: Schedules Filing Deadline Moved to Nov. 4---------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware extended, at the behest of Rehrig International Incorporated and its affiliates, the deadline to file the Debtors' schedules of assets and liabilities, schedules of executory contracts and unexpired leases, and statements of financial affairs by 60 days to Nov. 4, 2008.

The Debtors filed for Chapter 11 protection on Sept. 5, 2008. Rules 1007(b) and (c) of the Federal Rules of Bankruptcy Procedure require the Debtors to file with its voluntary petition, or 15 days after, their Schedules and Statements. Rule 1007-1(b) of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware automatically extends the 15-day deadline for an additional 15 days if a debtor has more than 200 creditors and if the petition is accompanied by a list of all creditors and their addresses. Bankruptcy Rule 1007(c) allows the Court to extend a debtor's time to file its schedule and statement "for cause."

Before the Debtors filed for bankruptcy protection, their Chief Financial Officer resigned. The Debtors retained Gulf Atlantic Capital Corporation as financial advisors. Due to the resignation of the Debtors' CFO and critical matters that the Debtors' management and professionals like Gulf Atlantic were required to address before the commencement of the Debtors' Chapter 11 cases, the Debtors sought a 75-day extension of the filing deadline.

The Debtors told the Court that the volume of material that must be compiled and reviewed by the Debtors' limited staff to complete the Schedules and statements for each of the Debtors justify the the Debtors' request for extension. According to the Debtors, the additional time requested should help guarantee that the documents are as accurate as possible.

The company and its two affiliates filed for Chapter 11 protection on Sept. 5, 2008 (Bankr. D. Del. Case No. 08-12064). Stephen E. Garcia, P.C., represents the Debtors in their restructuring efforts as lead counsel. Kurtzman Carson Consulting, LLC, serves as the Debtors' Claims, Noticing and Balloting Agent. When the Debtors filed for protection from their creditors they listed estimated assets between $10 million and $50 million and estimated debts between $10 million and $50 million.

REHRIG INTERNATIONAL: Court OKs Stephen Garcia as Lead Counsel--------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware granted Rehrig International Incorporated and its affiliates permission to employ Stephen E. Garcia, P.C., as their lead counsel, nunc pro tunc to Sept. 5, 2008.

The Firm will, among other things, take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estate.

The Firm will charge the Debtors $495 per hour.

The Debtors assured the Court of the Firm's disinterestedness. The Firm doesn't hold or represent any interest adverse to the Debtors' estates.

The company and its two affiliates filed for Chapter 11 protection on Sept. 5, 2008 (Bankr. D. Del. Case No. 08-12064). Kurtzman Carson Consulting, LLC, serves as the Debtors' Claims, Noticing and Balloting Agent. When the Debtors filed for protection from their creditors they listed estimated assets between $10 million and $50 million and estimated debts between $10 million and$50 million.

REHRIG INTERNATIONAL: Court OKs Duane Morris as Co-Counsel----------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware granted Rehrig International Incorporated and its affiliates permission to employ Duane Morris, LLP, as their bankruptcy co-counsel, nunc pro tunc to Sept. 5, 2008.

The Firm will, among other things, prepare and pursue confirmation of the Debtors' plan, approval of the Debtors' plan, and approval of the Debtors' disclosure statement, and prepare necessary applications, motions, answers, orders, reports, and other legal papers on behalf of the Debtors.

The company and its two affiliates filed for Chapter 11 protection on Sept. 5, 2008 (Bankr. D. Del. Case No. 08-12064). Stephen E. Garcia, P.C., represents the Debtors in their restructuring efforts as lead counsel. Kurtzman Carson Consulting, LLC, serves as the Debtors' Claims, Noticing and Balloting Agent. When the Debtors filed for protection from their creditors they listed estimated assets between $10 million and $50 million and estimated debts between $10 million and $50 million.

According to WSJ, the office of Massachusetts Secretary of the Commonwealth William Galvin's spokesperson Brian McNiff said that the secretary received some complaints about Reserve Management and is looking into them. WSJ relates that some investors claimed that they haven't received their money out of the company's funds quickly enough.

As reported in the Troubled Company Reporter on Oct. 3, 2008, Reserve Management disclosed that it will liquidate the assets of The Reserve Primary Fund and distribute $20 billion to the investors in proportion to the number of shares they held as of Sept. 15. The $20 billion to be disbursed on Oct. 13 is 32% of the Fund's assets at the close of business on Sept. 12. Reserve Management said it is working with the SEC to come up with a plan to distribute other assets "in a fair and equitablemanner."

WSJ relates that the Primary Fund, which had about $62 billion in September, has redeemed about $10 billion. Reserve Management said that other redemptions will follow when money becomes available as assets mature or are sold, WSJ states.

* * *

As reported in the Troubled Company Reporter on Sept. 25, 2008,Moody's Investors Service downgraded and left on review forfurther downgrade 10 money market and bond funds managed byReserve Management Company, Inc., including The Reserve PrimaryFund's Caa rating.

RITE AID: John Standley Returns as President and CEO----------------------------------------------------Rite Aid Corporation disclosed in a Securities and Exchange Commission filing that John T. Standley has returned as President and Chief Operating Officer of the company.

Rite Aid also has appointed Frank G. Vitrano to the combined role of Senior Executive Vice President, Chief Financial Officer and Chief Administrative Officer.

Mr. Standley will assume the role of President from Mary Sammons, who remains Chairman and CEO. As COO, Mr. Standley will replace Robert J. Easley, who left the Company on Sept. 24, 2008. The outgoing CFO, Kevin Twomey, and the outgoing CAO, Pierre Legault, left the Company on Sept. 24, 2008.

Both Messrs. Standley and Vitrano were most recently at Pathmark Stores, Inc., where Mr. Standley was Chief Executive Officer and Board Director from 2005 through 2007. Mr. Vitrano, 53, served in a variety of positions during a 35-year career at Pathmark, where he was most recently President, CFO and Treasurer from 2002 to 2007. Mr. Standley, 45, has intimate knowledge of Rite Aid's operations gained during six years at the Company between 1999 and 2005, serving as Senior Executive Vice President and Chief Administrative Officer from June 2002 until August 2005, and, in addition, as CFO from January 2004 until August 2005. During that period, Mr. Standley oversaw the implementation of new financial controls and was integrally involved in the development of the Company's current information systems, real estate strategy and compliance programs. He also has served for the past several months in an advisory capacity to the Company.

In connection with his appointment, Mr. Standley has entered into an employment agreement with the Company running for a two-year period, to be renewed automatically for additional one-year periods. Mr. Standley's compensation package includes an annual base salary of $900,000 and he is eligible to earn a target bonus of 125% of his annual base salary at the end of fiscal 2009 based on the Company's achievement of fiscal 2009 bonus plan targets. The Company has also granted Mr. Standley an option to purchase 3,500,000 shares of the Company's common stock with an exercise price of $0.96 per share, vesting annually in four equal increments, which may be accelerated under certain circumstances.

Mr. Standley will also enter the Company's Executive Equity Plan which may award a mix of additional options at the closing price of the Company's common stock on the date of grant and other equity and cash incentives -- as determined by the Company's Compensation Committee. Upon the occurrence of a Change in Control of the Company, as defined in Mr. Standley's employment agreement, the option to purchase 3,500,000 shares of common stock, in addition to any options awarded under the EEP, shall immediately vest.

In addition, Mr. Standley's employment agreement also contains certain non-competition provisions as well as severance provisions for compensation in the event of his termination with or without cause, as defined in the agreement. In the event of termination without cause, Mr. Standley's severance compensation includes payment of an amount equal to two times the sum of his base salary and annual target bonus and immediate vesting of certain of his stock option awards.

Mr. Vitrano has also entered into an employment agreement with the Company running for a two year period, to be renewed automatically for additional one-year periods. Mr. Vitrano's compensation package includes an annual base salary of $700,000 and he is eligible to earn a target bonus of 110% of his annual base salary at the end of fiscal 2009 based on the Company's achievement of fiscal 2009 bonus plan targets. The Company has also granted Mr. Vitrano an option to purchase 1,400,000 shares of the Company's common stock with an exercise price of $0.96 per share, vesting annually in four equal increments, which may be accelerated under certain circumstances.

Mr. Vitrano will also enter the Company's EEP which may award a mix of additional options at the closing price of the Company's common stock on the date of grant and other equity and cash incentives, as determined by the Company's Compensation Committee. Upon the occurrence of a Change in Control of the Company, as defined in Mr. Vitrano's employment agreement, the option to purchase 1,400,000 shares of common stock shall immediately vest. In addition, Mr. Vitrano's employment agreement also contains certain non-competition provisions as well as severance provisions for compensation in the event of his termination with or without cause, as defined in the agreement. In the event of termination without cause, Mr. Vitrano's severance compensation includes payment of an amount equal to two times the sum of his base salary and annual target bonus and immediate vesting of certain of his stock option awards.

On Sept. 30, 2008, Jerry Mark deBruin left his position as the Company's Executive Vice President, Pharmacy effective immediately. His responsibilities included pharmacy purchasing, pharmacy acquisitions, managed care, government affairs and pharmacy business development, which reports to John Standley, President and COO, until a successor is appointed.

About Rite Aid Corporation

Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation(NYSE: RAD) -- http://www.riteaid.com/-- is a drugstore chain with more than 5,000 stores in 31 states and the District ofColumbia.

* * *

As reported in the Troubled Company Reporter on Sept. 29, 2008, Moody's Investors Service downgraded Rite Aid Corporation's long term ratings, including its probability of default rating, to Caa1 from B3 and affirmed its speculative grade liquidity rating at SGL-4. In addition, Rite Aid's long term ratings were placed on review for further possible downgrade. The downgrade to Caa1 reflects Rite Aid's very weak operating performance for the second quarter ended August 30, 2008 (EBIT fell to negative $62 million versus positive $29 million in the prior period) which hasresulted in a weakening in credit metrics. The review for furtherpossible downgrade reflects Rite Aid's continued difficulties atits Eckert subsidiary, management's downward earnings revision, aswell as the high likelihood that EBIT will be unable to coverinterest for the full year ended March 2009 and that many of RiteAid's debt protection measures will deteriorate further. These ratings are downgraded and placed on review for further possible downgrade:

-- Corporate family rating to Caa1 from B3; -- Probability of default rating to Caa1 from B3; -- First-lien bank facilities to B2 from Ba3; -- Second-lien secured notes to Caa1 from B3; -- Guaranteed senior notes to Caa2 from Caa1; -- Senior notes and debentures to Caa3 from Caa2.

This rating is affirmed:

-- Speculative grade liquidity rating at SGL-4.

The current LGD assessments remain subject to change.

RITE AID: Board Approves 2009 Incentive Compensation Plan---------------------------------------------------------Rite Aid Corporation disclosed in a Securities and Exchange Commission filing that on Oct. 2, 2008, the Compensation Committee of its Board of Directors approved annual long-term incentive compensation, consisting of equity and, for certain participants, cash-based performance awards. The plan participants include the "named executive officers," other corporate executive officers and key managers of the Company. These awards, which have been made annually, are designed to align our objectives with those of our shareholders to improve the financial performance of the Company.

The Board approved a long-term incentive value for each participant that is defined as a percentage of base salary, provided in the form of a mix of nonqualified stock options, restricted stock or cash performance awards.

The Board established the financial goals and each participant's target for the cash performance awards under the 2009 Long-Term Incentive Plan. The cash performance awards, or "performance units," are based upon reaching certain target levels of Adjusted EBITDA for the combined three fiscal years of 2009, 2010 and 2011. The target levels of Adjusted EBITDA are set each year of the three year performance period. The possible payout of the performance awards range from zero to 200% of the target amount, depending on Adjusted EBITDA as compared to target for the combined three year performance period, with the awards paid in cash at the end of the period.

The nonqualified stock options granted under the 2009 long-term incentive plan will vest one-quarter per year over four years from the date of grant, generally based on continued employment, and will be priced at the closing price on the date of grant. The restricted stock vests one-third per year over three years from the date of grant, generally based on continued employment.

Pursuant to the 2009 long-term incentive plan, the equity awards granted to the named executive officers under the 2006 Omnibus Equity Plan are:

Cash performance units were also granted in these target amounts to the named executive officers: Ms. Sammons, $900,000 and Mr. Sari, $220,600, which will be paid only if the Company achieves certain target levels of Adjusted EBITDA for the three year performance period.

About Rite Aid Corporation

Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation(NYSE: RAD) -- http://www.riteaid.com/-- is a drugstore chain with more than 5,000 stores in 31 states and the District ofColumbia.

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As reported in the Troubled Company Reporter on Sept. 29, 2008, Moody's Investors Service downgraded Rite Aid Corporation's long term ratings, including its probability of default rating, to Caa1 from B3 and affirmed its speculative grade liquidity rating at SGL-4. In addition, Rite Aid's long term ratings were placed on review for further possible downgrade. The downgrade to Caa1 reflects Rite Aid's very weak operating performance for the second quarter ended August 30, 2008 (EBIT fell to negative $62 million versus positive $29 million in the prior period) which hasresulted in a weakening in credit metrics. The review for furtherpossible downgrade reflects Rite Aid's continued difficulties atits Eckert subsidiary, management's downward earnings revision, aswell as the high likelihood that EBIT will be unable to coverinterest for the full year ended March 2009 and that many of RiteAid's debt protection measures will deteriorate further. These ratings are downgraded and placed on review for further possible downgrade:

-- Corporate family rating to Caa1 from B3; -- Probability of default rating to Caa1 from B3; -- First-lien bank facilities to B2 from Ba3; -- Second-lien secured notes to Caa1 from B3; -- Guaranteed senior notes to Caa2 from Caa1; -- Senior notes and debentures to Caa3 from Caa2.

Mr. Nicholson, who has served as the Company's chief operating officer since June 2007, will add responsibilities as president to his current role, reporting to R. Chad Dreier, the Company's chairman and chief executive officer.

In connection with his promotion, the Board of Directors increased Mr. Nicholson's base salary to $750,000 and granted a stock option award for 100,000 shares of common stock with an exercise price based on the closing market price of the Company's stock on the award date of October 1, 2008.

Additionally, effective October 1, 2008, the Board of Directors increased the base salary of Mr. Gordon Milne, the Company's Chief Financial Officer, to $700,000 and granted Mr. Milne a restricted stock unit award to receive 30,000 shares of common stock which vests over three years, one-third of the total grant each year, beginning on Nov. 1, 2009.

About Ryland Group

Based in Calabasas, California and founded in 1967, The RylandGroup Inc. (NYSE: RYL) -- http://www.ryland.com/-- is one of the nation's largest homebuilders and a leading mortgage-financecompany. The company currently operates in 28 markets across thecountry and has built more than 275,000 homes and financed morethan 230,000 mortgages since its founding in 1967.

* * *

As reported in the Troubled Company Reporter on Dec. 21, 2007,Moody's Investors Service lowered the ratings of The Ryland GroupInc., including its corporate family rating and the ratings on thevarious issues of senior unsecured notes to Ba1 from Baa3. Theratings were taken off review for downgrade where they had beenplaced on Oct. 31, 2007, and the outlook is negative.

The company has reported six consecutive quarters of net lossessince the first quarter of 2007. The company posted $241.6 million in net losses on $487.9 million in revenues for the second quarter ended June 30, 2008.

The actions are part of an ongoing, wider review of all RMBS transactions, in light of the deteriorating housing market and rising delinquencies and foreclosures. Many "scratch and dent" pools are exhibiting higher than expected rates of delinquency, foreclosure, and REO. The rating adjustments will vary based on level of credit enhancement, collateral characteristics, pool-specific historical performance, quarter of origination, and other qualitative factors.

Complete rating actions are:

Issuer: Salomon Brothers Mortgage Trust 2001-2

-- Cl. M-5, Current rating Caa1, downgraded to Ca

SEMGROUP LP: Court Okays Appointment of Producer Creditor Panel ---------------------------------------------------------------The Hon. Brendan L. Shannon of the United States Bankruptcy Court for the District of Delaware has approved the Oklahoma Producers' request for the appointment of an official committee representing the producer creditors in SemGroup LP and its debtor affiliates' Chapter 11 cases, Rod Walton at Tulsa World reported. A hearing on the Producers' request was held October 3, 2008.

"The judge said this was an extraordinary remedy," Steven W. Bugg, Esq., representing the Oklahoma Producers, was quoted by Tulsa World as saying. "He said it was very rare to allow that, but that producers had proved their case."

"We look forward to working with the producers' committee and all of our other stakeholders to complete a successful restructuring," SemGroup spokesman Lance Ignon told Tulsa World.

Prior to the October 3 hearing, Bank of America, N.A., as administrative agent for the Debtors' prepetition and postpetition lenders, as well as the Official Committee of Unsecured Creditors and Roberta A. DeAngelis, Acting United States Trustee for Region 3, opposed the formation of the Producers' Committee.

BofA argued that a Producers' Committee cannot adequately represent the interest all its constituents in the Debtors' cases since each producer and supplier will assert unique, individual, and conflicting rights. Moreover, BofA pointed out that the procedures established by the Court will eliminate the need for a Producers' Committee, which will only substantially increase the expenses of the Debtors' estates.

Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP, in New York, insisted that the Producers are adequately represented through the Committee. He told the Court that the Creditors' Committee's interests are in conjunction with those of the Producers' and the Committee is looking forward to working with the Producers to maximize the value of the Debtors' estates. The formation of a special committee will only create an additional cost to the estates, he argued.

The U.S. Trustee asserted that the Bankruptcy Code does not authorize the appointment of a claimants' committee or a secured creditors' committee. Moreover, the U.S. Trustee complained that the Producers' request is premature since no determination has been made whether the Producers' claims are secured or entitled to administrative priority.

Despite the objections, Judge Shannon authorized the U.S. Trustee to appoint members to the official producers' committee among the Debtors' oil, gas and asphalt producers. According to Tulsa World, producers can offer the names of prospective appointees to the U.S. Trustee in the week following a Court order.

The Debtors allegedly owe up to $1,000,000,000 to more than 1,000 Producers for goods sold on credit in the weeks prior to the Petition Date, Tulsa World reported. The Court will determine how to fund the committee at a later date, the report said.

SemGroup L.P.'s consolidated, unaudited financial conditions as ofJune 30, 2007, showed $5,429,038,000 in total assets and $5,033,214,000 in total debts. In their petition, they showed more than $1,000,000,000 in estimated total assets and more than$1,000,000,000 in total debts.

According to Moody's, these rating actions are as a result of the deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities.

SIMON WORLDWIDE: Greg Mays Replaces Anthony Kouba as CEO--------------------------------------------------------Simon Worldwide Inc. disclosed in a Securities and Exchange Commission filing that on Sept. 30, 2008, J. Anthony Kouba resigned from his positions as Chief Executive Officer and Director. The Board of Directors of the Company elected Greg Mays to serve as the Company's Chief Executive Officer, effective Oct. 1, 2008.

Mr. Mays, 62, will continue to serve as the Company's chief financial officer, a position he has held since May 2003. Mr. Mays is a consultant and private investor. Throughout his career, Mr. Mays has held numerous executive and financial positions, most recently as chairman of the board of Wild Oats Markets, Inc. from July 2006 to August 2007. Mr. Mays also served as executive vice president-finance and administration of Ralphs Grocery Company from 1995 to 1999. Mr. Mays also serves on the Board of Directors of Source Interlink Companies, Inc. and The Great Atlantic & Pacific Tea Company, Inc.

Headquartered in Los Angeles, Calif., Simon Worldwide Inc. (OTC:SWWI) was prior to August 2001, a multi-national, full servicepromotional marketing company. In August 2001, McDonald'sCorporation, the company's principal customer, terminated its 25-year relationship with the company as a result of the embezzlementby a former company employee of winning game pieces fromMcDonald's promotional games administered by the company.

As a result of the loss of its customers, the company no longerhas any operating business. Since August 2001, the company hasconcentrated its efforts on reducing its costs and settlingnumerous claims, contractual obligations, and pending litigation. As a result of these efforts, the company has been able to resolvea significant number of outstanding liabilities that existed atDec. 31, 2001, or arose subsequent to that date. At June 30,2008, the company had reduced its workforce to 4 employees from136 employees at Dec. 31, 2001. The company is currently managedby the chief executive officer, together with a principalfinancial officer and an acting general counsel.

Simon Worldwide's consolidated balance sheet at June 30, 2008,showed $20,026,000 in total assets, $1,158,000 in totalliabilities, and $34,374,000 in redeemable preferred stock,resulting in a $15,506,000 stockholders' deficit.

The company reported net income of $1,560,000 for the secondquarter ended June 30, 2008, compared with a net loss of $380,000for the same period last year.

SIRIUS XM: Names Dara Altman as Exec. VP and James Ryu as Sr. VP----------------------------------------------------------------Sirius XM Radio Inc. disclosed in a Securities and Exchange Commission filing that on Sept. 26, 2008, Dara F. Altman was appointed as Executive Vice President and Chief Administrative Officer, and James Rhyu was appointed as Senior Vice President and Chief Accounting Officer. In this capacity, Mr. Rhyu will serve as the company's principal accounting officer.

Ms. Altman, 50, has served as Executive Vice President, Business and Legal Affairs, of XM Satellite Radio since January 2006. Ms. Altman was Executive Vice President of Business Affairs for Discovery Communications, a nonfiction media company, from 1997 through 2005. Prior to joining Discovery Communications, Ms. Altman served as Senior Vice President and General Counsel of Reiss Media Enterprises from 1993 to 1997, which owned Request TV, a national pay-per-view service. Ms. Altman also served as counsel for Home Box Office and started her career as a lawyer at Willkie, Farr & Gallagher LLP.

The company has entered into a three-year employment agreement with Ms. Altman. She will receive an annual base salary of $446,332 per year and will be entitled, among other things, to participate in any bonus plan generally offered to employees at the same level.

In the event the company terminates her employment without cause or she terminates her employment for good reason, Ms. Altman will receive a lump sum payment equal to two times her base salary plus the higher of the last bonus actually paid to her and a target bonus. She will also receive certain other amounts and benefits specified in the agreement.

Mr. Rhyu, 38, has served as Senior Vice President and Controller of XM Satellite Radio since January 2006. Prior to joining XM, Mr. Rhyu served as Corporate Controller of Graftech International, a global manufacturing company, since 2004. He has also held positions at both Ernst & Young and Deloitte & Touche. Mr. Rhyu is a Certified Public Accountant.

THe company has also entered into a three-year employment agreement with Mr. Rhyu. He will receive an annual base salary of $325,000 per year and will be entitled to participate in any bonus plan generally offered to employees at the same level.

In the event that on or before July 27, 2009, the company terminates Mr. Rhyu's employment without cause or he terminates his employment for good reason, he will receive a lump sum payment equal to two times his base salary plus a target bonus. He will also receive certain other amounts and benefits specified in the agreement. In the event the company terminates Mr. Rhyu's employment without cause after July 27, 2009, he will be entitled to receive severance, in the form of salary continuation, for a period of one year plus a bonus and other benefits.

In the event that any payment Sirius makes, or benefit it provides, to Ms. Altman or Mr. Rhyu would be deemed to be an "excess parachute payment" under the Internal Revenue Code, that he or she would be subject to an excise tax, the company have agreed to pay Ms. Altman a gross-up payment equal to the amount of such tax and such additional amount as may be necessary to place her in the exact same financial position that she would have been in if the excise tax were not imposed, and the company has agreed that Mr. Rhyu's payments and benefits (not limited to severance) will be reduced to the extent necessary to eliminate any such excise taxes, unless he would be in a better net after-tax position to receive all payments and benefits, in which case all payments and benefits would be paid.

Headquartered in New York, Sirius XM Radio Inc. --http://www.sirius.com/-- formerly Sirius Satellite Radio Inc., is a satellite radio provider. The company offers over 130 channelsto its subscribers, 69 channels of 100% commercial-free music and65 channels of sports, news, talk, entertainment, traffic, weatherand data content. Its primary source of revenue is subscriptionfees, with most of its customers subscribing to SIRIUS on eitheran annual, semi-annual, quarterly or monthly basis. The companyderives revenue from activation fees, the sale of advertising onits non-music channels, and the direct sale of SIRIUS radios andaccessories. Various brands of SIRIUS radios are Best Buy,Circuit City, Costco, Crutchfield, Sam's Club, Target and Wal-Mart.

* * *

Standard & Poor's Ratings Services affirmed its corporate ratingson Sirius XM Radio Inc. (CCC+) and XM Satellite Radio Holdings Inc., which S&P analyzes on a consolidated basis for purposes of the corporate credit rating, and removed them from CreditWatch with developing implications, where S&P placed them on March 4, 2008. The issue-level ratings on debt at New York City-based Sirius XM Radio Inc. and at Sirius' unrestricted subsidiaries, XM Satellite Radio Holdings Inc. and XM Satellite Radio Inc., remain on CreditWatch with developing implications until additional information becomes available regarding the ultimate capitalization and the effect of cost-saving plans and growth initiatives on secured and unsecured recovery at Sirius and XM. Upon S&P's examination of additional information, S&P could raise, affirm, or lower the issue-level ratings. The outlook is developing.

SKY MERGER: Moody's Rates Proposed Senior Secured Notes 'Ba3'-------------------------------------------------------------Moody's Investors Service assigned Ba3 ratings to the proposed senior secured notes of Sky Merger Sub Corporation, an acquisition vehicle intended to facilitate the acquisition of Apria Healthcare Group Inc. by a private investment fund affiliated with The Blackstone Group. Concurrently, Moody's assigned a Ba3 Corporate Family and Probability of Default ratings to the company. The outlook for the ratings is stable.

The proposed transaction values Apria at about $1.6 billion and remains subject to stockholder approval. The transaction is expected to close in the fourth quarter of 2008 and will be financed through a combination of equity and debt. Proceeds from the proposed $1,010 million secured notes and about $679 million in common equity will be used to purchase 100% of the equity of Apria, refinance existing debt and pay expenses associated with the transaction. The proposed $150 million asset-based revolver (not rated) will include a sub-facility for letters of credit. At closing, $30 million of the revolver is expected to be drawn for general corporate purposes, including working capital.

Merger Sub's Ba3 corporate family rating is constrained by relatively high initial leverage in light of the ongoing unfavorable Medicare reimbursement environment. Moreover, Moody's remains concerned that future Medicare legislation could further constrain Apria's revenue and cash flow. Nonetheless, the ratings reflect increased clarity offered by the recently enacted Medicare Improvements for Patients and Providers Act of 2008: In particular, the act postponed the implementation of competitive bidding for medical equipment in exchange for 9.5% price cuts for existing suppliers across several DME/oxygen product categories, starting January 2009.

The legislation also clarified the extent of the loss of revenue in Apria's oxygen therapy business commencing in 2009. The ratings benefit from the recession resistant nature of Apria's businesses, significant market share in key business segments, and leading positions with both health care providers third party payors. The ratings also benefit from the expansion of the company's infusion business following the acquisition of Coram in December 2007 and the potential for incremental growth in specialty pharmaceuticals and infusion going forward. The ratings reflect Moody's expectations that cost reduction initiatives already under way are likely to significantly offset ongoing reimbursement pressures.

Ratings are subject to review of executed documentation. The corporate and instrument ratings of Merger Sub will be transferred to the continuing entity, which will be Apria Healthcare Group Inc. upon completion of the transaction.

Apria, headquartered in Lake Forest, California, provides respiratory therapy (52% of revenues), home infusion (38%) and home medical equipment (10%) through approximately 550 locations serving patients in all 50 states. Revenues were about $2.1 billion for the 12 months ended June 30, 2008, pro forma for the Coram acquisition.

SMART MODULAR: Moody's Cuts Notes Rating to 'B1' with Neg. Outlook------------------------------------------------------------------Moody's Investors Service changed the outlook of SMART Modular Technologies, Inc. to negative from stable, downgraded the senior secured second lien notes rating to B1 from Ba3 and affirmed the corporate family rating at B1.

The outlook change reflects continued decline in SMART's revenues due to dramatic product price erosion in its core DRAM memory module segment, which has impacted profitability and pressured EBITDA. Moody's believes that the reduced level of EBITDA may cause SMART to violate the financial covenants under its $50 million revolving credit facility. The negative outlook further underscores Moody's expectations that the company may generate breakeven to slightly negative free cash flow in the near-term and the potential of a weaker liquidity profile, if the company were to lose access to its revolving credit facility.

Moody's notes that SMART is challenged by 1) a very volatile, cyclical, and competitive industry characterized by rapid technological changes, short product life cycles, and wide fluctuations in product supply and demand; 2) significant customer concentration with Hewlett Packard and Cisco representing 33% and 13% of its fiscal Q4 2008 revenues, respectively; 3) above average exposure to downturns in corporate technology spending; and 4) the potential for further pricing pressure in SMART's core DRAM memory segment resulting in revenues and gross profit decline. The rating is supported by Moody's expectations that the company will maintain good EBITDA interest coverage over the near to intermediate term.

The rating change on the senior secured second lien notes reflects the changes in the capital mix of the company. The previous rating action occurred on January 30, 2008 when Moody's upgraded SMART Modular's Corporate Family Rating to B1 from B2, Probability of Default Rating to B1 from B2 and senior secured second lien notes rating to Ba3 from B1.

SMART Modular Technologies (WWH), Inc., headquartered in Fremont, California and incorporated in the Cayman Islands, is a leading independent manufacturer of specialty and standard DRAM and Flash memory products, embedded computing subsystems, and TFT-LCD display products that are sold to OEMs. Revenues and EBITDA for FY2008 were $670 million and $54 million million (net of $7.3 million of non-cash stock compensation charge), respectively.

SMART-TEK SOLUTIONS: Delays Annual Report Filing with SEC---------------------------------------------------------Smart-tek Solutions, Inc., disclosed in a Securities and Exchange Commission filing that it was unable to file, without unreasonable effort and expense, its Form 10-KSB Annual Report for the period ended June 30, 2008 because its auditors have not completed their audit of the financial statements.

It is anticipated that the Form 10-KSB Annual Report, along with the audited financial statements, will be filed on or before the 15th calendar day following the prescribed due date of the Form 10-KSB.

About Smart-tek Solutions

Based in Reno, Nev., Smart-tek Solutions, Inc. (OTC BB: STTK) --http://www.smart-teksolutions.com/-- through its subsidiary, Smart-tek Communications Inc., engages in the design, sale,installation, and service of electronic hardware and softwareproducts in Canada.

Going Concern Disclaimer

John Kinross-Kennedy, in Irvine, Calif., expressed substantialdoubt about Smart-tek Solutions Inc.'s ability to continue as agoing concern after auditing the company's consolidated financialstatements for the year ended June 30, 2007. The auditor pointedto the company's net loss, negative cash flow from operationsduring the year ended June 30, 2007, and working capitaldeficiency and shareholders' deficiency at June 30, 2007.

Smart-tek Solutions Inc.'s consolidated balance sheet at March 31,2008, showed $1,599,736 in total assets and $2,837,981 in totalliabilities, resulting in a $1,238,245 total stockholders'deficit.

At March 31, 2008, the company's consolidated balance sheet alsoshowed strained liquidity with $1,144,577 in total current assetsavailable to pay $2,837,981 in total current liabilities.

The company reported a net loss of $78,416, on total revenue of$1,128,340, for the third quarter ended March 31, 2008, comparedwith a net loss of $14,913, on total revenue of $549,579, in thesame period last year.

STAR-LEDGER: To Close Star-Ledger If No Agreement With Union------------------------------------------------------------George Arwady, the publisher of The Star-Ledger of Newark, New Jersey, said that the paper will be sold or closed on Jan. 5, 2009, unless 200 buyouts and several union concessions are met, Joe Strupp at Free Republic reports.

Russell Adams and Shira Ovide at The Wall Street Journal relate that the Star-Ledger almost completed cost-cutting measures that will hold off its sale or closure, including cutting costs, reducing staff, and eliminating sections as the Web and downturn have eroded print readership and advertising.

Free Republic states that Star-Ledger had said that it would need about 200 workers to accept buyouts and the drivers and mailers unions to renegotiate contracts. WSJ says that the 200 workers is more than 25% of its non-unionized full-time staff.

Mr. Arwady, according to Free Republic, told staffers in e-mails that the number of newsroom buyout takers has fallen short. About 50% of the 330 newsroom staffers have applied for buyouts, WSJ says, citing sources. Free Republic states that the buyouts were first offered on July 31. Buyout applications are due Oct. 1, says the report.

WSJ states that while the Star-Leger entered into a new agreement with the union representing its mailers in September and more than enough staffers have applied for the buyout, the newspaper couldn't reach an agreement with its drivers' union. WSJ says that the union representing truck drivers at the Star-Ledger was expected on Tuesday to accept a new contract.

Mr. Arwady said in an E-mail obtained by the Free Republic that it is doubtful that the drivers will reach an agreement with the Star-Ledger by Oct. 8, 2008.

WSJ relates that the Star-Ledger enlisted J.P. Morgan Chase & Co. for a possible sale of the paper, but no steps have been taken to seek buyers or circulate financial information.

Citing Star-Ledger parent Advance Publications Inc.'s president Donald Newhouse, WSJ states that the Star-Ledger expected to post as much as $40 million in losses.

The Times of Trenton -- the Star-Ledger's sister publication -- has received more applications for buyouts than the 25 it needed to avoid closure, WSJ reports.

About The Star-Ledger

The Star-Ledger is a newspaper in Newark, New Jersey. It is a sister paper to the Jersey Journal of Jersey City, The Times of Trenton, and the Staten Island Advance, all of which are owned by Advance Publications.

STAT AMBULANCE: Asks Court to Lift Stay to Prosecute Claim----------------------------------------------------------West Virginia's Office of the Insurance Commissioner asks Judge Ronald G. Pearson of the U.S. Bankruptcy Court for the Southern District of West Virgina to lift the automatic stay imposed in Stat Ambulance Service Inc.'s chapter 11 cases to allow it to file a case against the company in Kanawha County Circuit Court for non-payment of worker's compensation, Pamela Scot Johnson of the Williamson Daily News (West Virginia) reports.

The report says Stat, which is owned by Jason Smyth, is required by bankruptcy law to follow all state laws respective to doing business in West Virginia. This includes having a worker's compensation policy in effect for the protection of its workers.

The report says that, according to papers filed in court, the Insurance Commissioner's office argued that "[w]orkers' compensation coverage is mandatory and is required to be in continual effect as long as the debtor is in his Chapter 11 plan."

"By not having workers' compensation (Stat) is in policy default," Larry M. Bonham, Esq., attorney for the Insurance Commissioner of West Virginia, pointed out according to the report. "By being in default and having a liability to the Uninsured Fund, the OIC is obligated to initiate action in Kanawha County Circuit Court to enjoin the employer from continuing to operate the employer's business. We are looking to put Stat out of business."

The report relates that Mr. Bonham said during the period without coverage, Stat has "several claims filed against it," which were paid from West Virginia's Uninsured Employer Fund. "Those claims remain unpaid," said Mr. Bonham. "Prior to the present lapse, (Stat) had another lapse in coverage, resulting in claims filed and paid out of the Uninsured Fund. Those claims remain unpaid."

The report relates that Mr. Bonham said that as of 2 p.m. Friday, no proof of Stat acquiring a workers' compensation policy had been sent to his office. He said that if Mr. Smyth were to obtain the insurance before the Oct. 22 court date that he will ask the judge to dismiss the case but he said he will request that the company be ordered to reimburse the state's Uninsured Fund along with fines.

Numerous calls placed to Mr. Smyth were not returned to Daily News.

Based in Gilbert, W. Va., Stat Ambulance Service, Inc.-- http://www.statambulanceservice.com/-- offers medical transportation, including emergency and non-emergency services, in the areas of West Virginia and Kentucky. The company filed for Chapter 11 relief on Jan. 25, 2007 (Bankr. S.D. W. Va. CaseNo. 07-20071). Joseph W. Caldwell, Esq., at Caldwell & Riffee, represented the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed assets of $1 million to$100 million, and debts of $1 million to $100 million.

STEVE & BARRY'S: Taps Clear Thinking as Advisor and Crisis Manager------------------------------------------------------------------Steve and Barry's LLC and its debtor-affiliates seek authority from the United States Bankruptcy Court for the Southern District of New York to employ Clear Thinking Group, LLC, nunc pro tunc to September 22, 2008.

On September 12, 2008, the Debtors, together with their financial advisors, Conway, Del Genio, Gries & Co., LLC and the Official Committee of Unsecured Creditors interviewed certain financial advisory firms interested in assisting the Debtors in their wind down efforts. After consultation with the Committee and Conway, the Debtors decided to engage Clear Thinking, nunc pro tunc to September 22, 2008, to assist them in their wind down process.

According to the Debtors, their wind down efforts need the assistance of sophisticated wind-down professionals like Clear Thinking. Clear Thinking is an advisor and crisis manager that specialize in areas of restructuring and distressed debt, including the wind-down of affairs of a Chapter 11 debtor, and post-confirmation trusts after the sale of substantially all of the debtor's assets, the Debtors note.

Pursuant to their engagement letter, Clear Thinking's duties include:

(a) actively leading and managing the Debtors' Chapter 11 cases and the wind-down process on the Debtors' behalf;

(b) assisting the Debtors with the preparation of the necessary motions, applications, schedules and budgets and other bankruptcy-related reporting, including monthly operating reports;

(c) assisting with the preparation of, and providing, any testimony that may be required in the Debtors' cases;

(d) assisting the Debtors with the liquidation of any remaining assets and collection of any proceeds;

(e) assisting with the preparation and implementation of any plan(s) of reorganization or liquidation, including required financial analysis and projections; and

(f) assisting the Debtors in all other areas required by the Debtors or the Committee.

The firm's monthly fees will be capped at $50,000, provided that excess fees for a particular month will be credited to the next monthly billing period in which Clear Thinking's aggregate fees are less than the capped amount. The Debtors will also reimburse Clear Thinking for all reasonable out-of-pocket expenses incurred in connection with those services.

Dorene Robotti, managing director of Clear Thinking Group LLC, says her firm has provided and will likely to continue to provide services to certain of the Debtors' creditors in matters wholly unrelated to the Chapter 11 cases. These parties-in-interest include WF Foothill, WF Trade Capital, WF Retail Finance, and WF Business Credit -- all affiliates of Wells Fargo.

Moreover, the Debtors agree to indemnify, hold harmless and defend Clear Thinking against all claims, liabilities, losses, damages and reasonable expenses as they are incurred relating to the engagement, including any legal proceeding in which Clear Thinking may be required to participate, but in which it is not a party. In no event, however, will Clear Thinking be indemnified in the case of its own gross negligence, willful misconducts or bad faith.

Based on the conflict search conducted by the firm, Ms. Robotti assures the Court that Clear Thinking does not represent a conflict of interest with respect to the services for which the firm is to employed in the Debtors' cases.

About Steve & Barry's

Headquartered in Port Washington, New York, Steve and Barry's LLC-- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at lowprices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. The discount clothing chain'sbrands include the BITTEN(TM) collection, the first-ever apparelline created by actress and global fashion icon Sarah JessicaParker, and the STARBURY(TM) collection of athletic and lifestyleapparel and sneakers created with NBA (R) star Stephon Marbury.

Diana G. Adams, United States Trustee for Region 2, has appointedseven members to the Official Committee of Unsecured Creditors inthe Debtors' Chapter 11 cases.

On Aug. 22, 2008, the Debtors obtained permission from the Courtto sell substantially all of their assets for $168 million to ajoint venture by Bay Harbour Management and York Capital, BHY S&BHoldings, LLC. Under the terms of the purchase agreement,majority of the Debtors' 276 stores will remain open.

When the Debtors filed for bankruptcy, they listed $693,492,000 intotal assets and $638,086,000 in total debts.

STEVE & BARRY'S: Wants Lease Decision Period Moved to Feb. 4 2009-----------------------------------------------------------------Steve and Barry's LLC and its debtor-affiliates ask the UnitedStates Bankruptcy Court for the Southern District of New Yorkto extend, until Feb. 4, 2009, their deadline to assume or rejectnonresidential real estate leases in their Chapter 11 cases.

The Debtors' current deadline is November 6, 2008.

Section 365(d)4) provides that an unexpired lease of nonresidential real property under which the debtor is the lessee will be deemed rejected, and the trustee will immediately surrender that nonresidential real property to the lessor, if the trustee does not assume or reject the unexpired lease by the earlier of (i) the date that is 120 days after the date of the order for relief; or (ii) the date of the entry of an order confirming a plan.

In order to comply with the terms of the Court-approved sale of substantially all of the Debtors' assets to BH S&B Holdings, LLC, including the "designation deadline," the Debtors assert that they need more time to assume or reject those real estate Leases.

Pursuant to the Sale Order and the Asset Purchase Agreement governing the sale of all of the Debtors' assets, the Purchaser has until January 31, 2009, to designate which Leases it wants the Debtors to assume and assign. As of entry of the Sale Order, the Purchaser has designated 108 stores of the 276 stores in 39 states, for continued operations. Accordingly, the Debtors have assumed and assigned the leases on those stores to the Purchaser.

The Debtors relate that as of October 2, 2008, they have already rejected 37 of the Leases pursuant to the Lease Rejection Procedures Order. They believe that the Purchaser may shortly designate additional stores for assumption and assignment.

Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York, asserts that the Court should extend the Debtors' lease decision period on grounds that:

(a) the Debtors are current with respect to all undisputed postpetition obligations under the Leases that are due and payable pursuant to Section 365(d)(3) of the Bankruptcy Code;

(b) permitting the Debtors to continue to occupy the locations covered by the Leases will not damage any related lessor more than the compensation or protections provided for by the Bankruptcy Code, as the Debtors intend to remain current on postpetition rent obligations. Moreover, any lessor, upon showing of cause, may request that the Court fix an earlier deadline by which the Debtors must assume or reject that lessor's lease.

(c) the Debtors' operations were conducted through stores that are the subject of the Leases. These properties, therefore, are primary assets of the Debtors at this time.

(d) there are approximately 130 leases that the Purchaser and the Debtors still have to evaluate. Pursuant to the Asset Purchase Agreement, the Debtors may not reject, prior to the designation deadline, any real property leases that the Purchaser has not designated.

"If the deadline to assume or reject the Real Estate Leases is not extended through February 4, 2009, the Debtors may be in breach of the Asset Purchase Agreement, the Purchaser will likely assert substantial administrative claims for the breach, and the Debtors may forgo proceeds from the potential sale of any Real Estate Leases," Mr. Waisman points out. To that extent, a substantial increase in administrative expense claims will not only negatively impact the recovery to the unsecured creditors, but may jeopardize the orderly wind down of the estates altogether, he says.

He adds that approval of a shorter extension will only necessitate expending the estate funds in the preparation, filing, service and prosecution of a motion seeking a further extension.

The extension will not prejudice the landlords' right to seek a contraction of the period, Mr. Waisman assures the Court.

The Court will convene a hearing on October 16, 2008, to consider the Debtors' request. Parties-in-interest must file their objections no later than October 13.

About Steve & Barry's

Headquartered in Port Washington, New York, Steve and Barry's LLC-- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at lowprices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. The discount clothing chain'sbrands include the BITTEN(TM) collection, the first-ever apparelline created by actress and global fashion icon Sarah JessicaParker, and the STARBURY(TM) collection of athletic and lifestyleapparel and sneakers created with NBA (R) star Stephon Marbury.

Diana G. Adams, United States Trustee for Region 2, has appointedseven members to the Official Committee of Unsecured Creditors inthe Debtors' Chapter 11 cases.

On Aug. 22, 2008, the Debtors obtained permission from the Courtto sell substantially all of their assets for $168 million to ajoint venture by Bay Harbour Management and York Capital, BHY S&BHoldings, LLC. Under the terms of the purchase agreement,majority of the Debtors' 276 stores will remain open.

When the Debtors filed for bankruptcy, they listed $693,492,000 intotal assets and $638,086,000 in total debts.

STEVE & BARRY'S: Wants Exclusivity Period Extended Until May 5--------------------------------------------------------------Steve and Barry's LLC and its debtor-affiliates ask the UnitedStates Bankruptcy Court for the Southern District of New York toextend through and including March 6, 2009, the period withinwhich they can exclusively file a Chapter 11 plan, and through andincluding May 5, 2009, the period within which they may solicitand obtain acceptances for that plan.

The Debtors assert that they need additional time to develop and negotiate a plan of liquidation and prepare a disclosure statement that contains adequate information under Section 1125 of the Bankruptcy Code.

Counsel for the Debtors, Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York, relates that although the sale of substantially all of the Debtors' assets to BH S&B Holdings, LLC closed on August 26, 2008, a number of important actions are still being, or have yet to be, performed pursuant to the Asset Purchase Agreement with respect to the Sale.

"Some of the tasks left to be performed include the reconciliation of the escrowed purchase price and the analysis and designation by the Purchaser of unexpired leases and executory contracts that have not yet been assumed or rejected by the Debtors," he says.

Mr. Waisman further informs the Court that the Purchaser, who has until January 31, 2009, to designate leases and contracts, is still in the process of evaluating and analyzing dozens of the remaining leases and many of the remaining executory contracts. In that light, the Debtors may not be in a position to finalize which leases and contracts to assume or reject until after the designation deadline, he says. He adds that the affected parties will have 30 days after rejection to file proofs of claim with respect to executory contracts and unexpired leases the Purchaser may designate for rejection, so that the Debtors may not be able to assess the impact of all of the rejection damages claims until the end of February 2009.

Also, pursuant to the Asset Purchase Agreement, the Purchaser and the Debtors agreed to conduct an inventory count and adjust the purchase price based on the results of that count. The inventory count has not been completed, and the Debtors cannot formulate a Chapter 11 plan until the Inventory Adjustment Process is completed, he explains.

According to Mr. Waisman, the Debtors have likewise not yet completed the process of quantifying their potential exposure to administrative, priority, and unsecured claims. The Debtors have yet to file a motion for a general claims bar date and an administrative claims bar date in their cases, he says.

Section 1121(b) of the Bankruptcy Code provides for an initial period of 120 days after the Petition Date during which a debtor has the exclusive right to propose a Chapter 11 plan, and 180 days from the Petition Date within which that debtor may solicit acceptances for that plan. Where the initial 120 days and 180 days exclusive periods prove to be an unrealistic time frame, the Court may extend a debtor's exclusive period for cause, Mr. Waisman reminds Judge Gropper. He adds that courts may consider factors as the size and complexity of the debtor's case, the existence of good-faith progress towards reorganization; the fact that the debtor is paying its bills as they come due, among others, in determining whether cause exists to extend that debtor's Exclusive Periods.

Mr. Waisman points out that the Debtors have made substantial progress advancing their Chapter 11 cases and maximizing value for the benefit of their estates and creditors. "In the less than three months, the Debtors have commenced these chapter 11 cases and, among other things, negotiated, obtained approval for and consummated the Sale," he says. Moreover, since the Petition Date, the Debtors have worked on a number of tasks necessary for the administration of the Chapter 11 cases, including:

-- stabilizing their business operations;

-- addressing their liquidity needs;

-- marketing their business and negotiating with various parties-in-interest through an arduous auction and sale process;

-- closing the sale of substantially all of their assets within two months of the Petition Date;

-- transitioning their operations to the Purchaser;

-- preparing schedules of assets and liabilities and statements of financial affairs;

-- working with the Office of the U.S. Trustee to provide requested financial information and comply with reporting requirements under the Bankruptcy Code.

"Indeed, extension of the Exclusive Periods will increase the likelihood of a greater distribution to the Debtors' stakeholders by facilitating an orderly, efficient and cost-effective plan process for the benefit of all creditors," Mr. Waisman avers. On the contrary, he says, termination of the Exclusive Periods could give rise to the threat of multiple plans and a contentious confirmation process resulting in increased administrative expenses and consequently diminishing returns to the Debtors' creditors.

Mr. Waisman assures the Court that granting the request will not harm or prejudice creditors or other parties-in-interest in the Chapter 11 cases. The Debtors also intend to wind down the remainder of the estates as soon as practicable, he adds.

In light of the request, the Court will convene a hearing on October 16, 2008. Parties-in-interest must file their objections with the Court by October 13.

About Steve & Barry's

Headquartered in Port Washington, New York, Steve and Barry's LLC-- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at lowprices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. The discount clothing chain'sbrands include the BITTEN(TM) collection, the first-ever apparelline created by actress and global fashion icon Sarah JessicaParker, and the STARBURY(TM) collection of athletic and lifestyleapparel and sneakers created with NBA (R) star Stephon Marbury.

Diana G. Adams, United States Trustee for Region 2, has appointedseven members to the Official Committee of Unsecured Creditors inthe Debtors' Chapter 11 cases.

On Aug. 22, 2008, the Debtors obtained permission from the Courtto sell substantially all of their assets for $168 million to ajoint venture by Bay Harbour Management and York Capital, BHY S&BHoldings, LLC. Under the terms of the purchase agreement,majority of the Debtors' 276 stores will remain open.

The collateral backing these transactions consists primarily of first-lien, adjustable-rate, Alt-A and Option ARM mortgage loans. The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions are a result of Moody's on-going review process.

TALLSHIPS FUNDING: Moody's Lowers Ratings on Expected Losses------------------------------------------------------------Moody's Investors Service has downgraded the ratings of four classes of notes issued by Tallships Funding, Ltd. The notes affected by the rating action are:

The transaction experienced, as reported by the Trustee on April 3, 2008, an event of default caused by the Class A Principal Coverage Ratio falling below 100%, as described in Section 5.1(h) of the Indenture dated December 14, 2006. This event of default is still continuing. Tallships Funding, Ltd. is a hybrid collateralized debt obligation backed primarily by a portfolio of RMBS securities, CDO securities and synthetic securities in the form of credit default swaps.

As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, certain parties to the transaction may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. In this regard the Trustee reports that a majority of the Controlling Class directed the Trustee to commence the process of the sale and liquidation of the Collateral in accordance with Section 5.5(a)(ii) of the Indenture.

The rating action taken reflects the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio.

TAMARACK RESORTS: Court to Rule on Case Dismissal Bid in Two Weeks------------------------------------------------------------------Judge Terry Myers of the U.S. Bankruptcy Court for the District of Idaho said Friday he'll decide within two weeks whether to dismiss the bankruptcy cases of two real estate companies that own a majority of troubled Tamarack Resort LLC, a move that could help clear the way for investment bank Credit Suisse to gain control of the resort, the Associated Press reports.

Attorneys for Jean-Pierre Boespflug, Tamarack's chief executive officer who owns 50.6% of the resort, and Alfredo Miguel Afif, its chairman who owns 26%; and for Credit Suisse participated in a three-hour court hearing.

The report says Judge Myers would be rendered a decision by October 16.

AP notes that Credit Suisse filed a lawsuit in March after Messrs. Boespflug's and Miguel's companies didn't fulfill their agreement to cover Tamarack's debt obligations when the resort defaulted on a $260 million syndicated loan. The bank now contends Mr. Boespflug and Mr. Miguel inappropriately sought bankruptcy protection for their companies to buy time for the resort to find a new investor.

Friday's hearing came a day after AP reported Mr. Boespflug planned to inject enough of his personal funding to open skiing in December -- but wouldn't commit to keeping the resort 90 miles north of Boise afloat until season's end without additional money from new investors.

According to AP, construction on Tamarack's Village Plaza centerpiece is at a standstill, with at least $56 million needed to finish the project. Bank of America and Sterling Bank plan separate foreclosure auctions for the resort's conference center and employee housing after Tamarack fell behind on payments.

In Friday's hearing, AP says, Credit Suisse argued that when Mr. Boespflug's Cross Atlantic Real Estate LLC and Mr. Miguel's VPG Investments filed for Chapter 11 bankruptcy protection Feb. 15, they sought only to buy time. They acted in bad faith by seeking not to reorganize their own companies, but rather to buy time for Tamarack to restructure and to keep the bank from replacing resort management, Credit Suisse's lawyers said.

"It's crystal clear they filed the case to stop us from executing on our state law rights," said Joel Samuels, an attorney for the Zurich, Switzerland-based bank, according to the report. "They filed to use bankruptcy as a parking space."

AP says Justin May, Esq., Mr. Boespflug's lawyer, countered that his client's continued personal financial commitment to Tamarack after seeking bankruptcy protection was ample evidence that he was sincere about protecting not only his own stake, but also the value of Tamarack Resort.

Mr. Boespflug has made $11 million in loans to the resort since April, with a 15% return to be paid to him upon a successful refinancing, AP notes.

In a separate foreclosure lawsuit filed by Credit Suisse against Tamarack in Idaho's 4th District Court, the bank in late September submitted a plan for a $10 million loan to a proposed receiver it's asking the court to appoint to assume resort management, according to court documents obtained by AP.

According to the documents, the $10 million would fund a 90-day budget, including winterization of the Village Plaza and the cost of starting up the ski hill. A new hearing on the proposed receivership, which a judge denied once in July, is planned for Oct. 15 in Cascade, Idaho.

Tamarack Resort LLC -- http://www.tamarackidaho.com/-- is the first all-season resort to open in the U.S. in 24 years and hasreceived national attention for its world-class mountain forskiing, hiking and mountain biking; Osprey Meadows, a Robert TrentJones, Jr., signature golf course; and beautiful Lake Cascade,suitable for swimming, sailing, fishing, sea kayaking, andboating. A key element of the Tamarack community is The Club atTamarack for homeowners, their families and guests. Nestled inIdaho's Payette River Mountains, Tamarack is a luxury boutiqueresort with a variety of lodging options all within walkingdistance of the four-season amenities. It opened in 2004 afterAlfredo Miguel Afif and Jean-Pierre Boespflug took over acontroversial and long-stalled ski resort project.

The actions are part of an ongoing, wider review of all RMBS transactions, in light of the deteriorating housing market and rising delinquencies and foreclosures. Many "scratch and dent" pools, including "hard money" pools, originated since 2004 are exhibiting higher than expected rates of delinquency, foreclosure, and REO. The rating adjustments will vary based on level of credit enhancement, collateral characteristics, pool-specific historical performance, quarter of origination, and other qualitative factors.

TEEVEE TOONS: Court Threatens To Appoint Trustee or Convert Case----------------------------------------------------------------Bill Rochelle of Bloomberg News reports that the U.S. Bankruptcy Court for the Southern District New York ordered TeeVee Toons, Inc., and its creditors to appear in a hearing scheduled Oct. 14, 2008, to explain why a Chapter 11 trustee shouldn't be appointed or the case converted to a Chapter 7 liquidation.

The Court, according to the report, recited how the Debtor isn't operating, has "no source of funds and no prospects of obtaining funding," and lacks the "means for funding even a liquidating plan."

The Court, according to the report, also noted how the Debtor fought efforts by the Official Committee of Unsecured Creditors to sue the principal and hasn't cooperated in putting two affiliates into bankruptcy.

About TEEVEE Toons

Headquartered in New York City, TEEVEE Toons Inc. dba T.V.T.Records -- http://www.tvtrecords.com/-- is an American record label. The Debtor filed for Chapter 11 petition on Feb. 19, 2008(Bankr. S.D.N.Y. Case No.: 08-10562). The Official Committee ofUnsecured Creditors has selected Sonnenschein Nath & Rosenthal LLPas its counsel. Alec P. Ostrow, Esq. and Constantine Pourakis,Esq, at Stevens & Lee, P.C. represent the Debtor in itsrestructuring efforts. The U.S. Trustee for Region 2 appointedfive creditors to serve on an Official Committee of UnsecuredCreditors. Sonnenschein Nath & Rosenthal LLP is counsel to theCommittee. When the Debtor filed for protection from itscreditors, it listed estimated assets between $10 million and$50 million and debts between $10 million and $50 million.

THORNBURG MORTGAGE: Extends Exchange Offer Deadline to October 31-----------------------------------------------------------------Thornburg Mortgage, Inc. disclosed in a Securities and Exchange Commission filing that it is amending its Exchange Offer and Consent Solicitation because the conditions were not satisfied prior to 5:00 p.m., New York City time, on Sept. 30, 2008, the expiration of the Exchange Offer.

As described, unless a satisfactory agreement was reached with the reverse repurchase agreement counterparties that are party to the Override Agreement dated as of March 17, 2008, as amended, the conditions that the Exchange Offer complies with applicable law as of the expiration of the Exchange Offer could not be satisfied due to certain requirements of Maryland law. The company has been unable resolve these issues in order to consummate the Exchange Offer.

The company is amending its Exchange Offer for all outstanding shares of its:

to (a) eliminate the $5.00 in cash consideration previously offered for each share of Preferred Stock and (b) change the number of shares of common stock of the company offered for each share of Preferred Stock to three shares after giving effect to the one-for-ten reverse stock split effective on September 26, 2008. No cash or other consideration will be delivered to tendering holders other than the three shares (after giving effect to the reverse stock split) of common stock for each share of Preferred Stock tendered.

The company intends to apply to the NYSE for a financial viability exemption from the shareholder approval requirements of the NYSE with respect to the additional shares of common stock to be issued in the Exchange Offer.

The company is extending the expiration of the Exchange Offer from 5:00 p.m., New York City time, on Sept. 30, 2008 to 5:00 p.m., New York City time, on Oct. 31, 2008, unless further extended or terminated by the company.

On Sept. 30, 2008, holders of Preferred Stock had tendered approximately

-- 93.6% (6,110,575 shares) of the Series C Preferred Stock;

-- 94.6% (3,785,079 shares) of the Series D Preferred Stock; -- 94.9% (2,999,844 shares) of the Series E Preferred Stock; and

-- 98.3% (29,818,589 shares) of the Series F Preferred Stock.

Holders who wish to tender their shares of Preferred Stock must deliver, or cause to be delivered, their shares and other required documents to the exchange agent before the expiration date.

As reported in the Troubled Company Reporter on Oct. 3, 2008, Standard & Poor's Ratings Services said that its rating on Thornburg Mortgage Inc. will remain at 'SD' until the company's preferred exchange offer is finalized. S&P will then evaluate the viability of Thornburg's business model and its future financial prospects. S&P believes that if the tender offer is unsuccessful, funding costs will be too high relative to the company's earnings generation capacity.

THORNBURG MORTGAGE: Inks Supplemental Indenture with Guarantors---------------------------------------------------------------Thornburg Mortgage, Inc. disclosed in a Securities and Exchange Commission filing that on Sept. 30, 2008, it entered into the First Supplemental Indenture with its subsidiary note guarantors, and Wilmington Trust Company, as trustee, relating to the Indenture, dated as of March 31, 2008, governing the Company's Senior Subordinated Secured Notes due 2015.

The Supplemental Indenture provides that the interest payment due on Sept. 30, 2008 in respect of the Senior Subordinated Notes beneficially owned by the holders who provided PIK Consents shall be paid in additional Senior Subordinated Notes in principal amount equal to the cash interest payable. Holders representing approximately 98.5% of the aggregate principal amount of the outstanding Senior Subordinated Notes provided their consent to receive the Sept. 30, 2008 interest payment in additional Senior Subordinated Notes in lieu of cash. As a result, additional Senior Subordinated Notes with an aggregate principal amount of approximately $101,989,620 were issued on Sept. 30, 2008.

As consideration for their consent, consenting Holders received a consent fee, at their election, of either:

-- 6.5125 shares (after giving effect to the one-for-ten reverse split of the Company's common stock effective Sept. 26, 2008) of its common stock in respect of each $1,000 principal amount of the Senior Subordinated Notes; or

-- additional Senior Subordinated Notes with an aggregate principal amount equal to the market value of the total number of Consent Shares on the date of issuance to which such holders otherwise would have been entitled.

Approximately 60% of the consenting Holders elected to receive Consent Notes in the aggregate principal amount of $13,540,945, and approximately 40% of the consenting Holders elected to receive 2,950,613 Consent Shares in the aggregate. The Consent Shares and Consent Notes were issued on Oct. 1, 2008. In connection with the PIK Consent, the Company has also agreed to use its reasonable best efforts to register the Consent Shares for resale by Oct. 10, 2008.

Also, on Sept. 30, 2008, the Company received the consent of a majority of the participants, in the Company's Principal Participation Agreement, dated March 31, 2008, to:

-- extend the deadline by which the Company must successfully complete the tender offer for all of its preferred stock pursuant to the terms of the March 31, 2008 financing transaction to Dec. 31, 2008;

-- eliminate the $5.00 in cash consideration previously offered for each share of preferred stock; and

-- change the number of shares of common stock of the Company offered for each share of preferred stock to three shares

The PIK Notes and the Consent Notes constitute a single series with the Senior Subordinated Notes currently outstanding and have the same terms as such other Senior Subordinated Notes but will bear a different CUSIP than such other Senior Subordinated Notes.

As reported in the Troubled Company Reporter on Oct. 3, 2008, Standard & Poor's Ratings Services said that its rating on Thornburg Mortgage Inc. will remain at 'SD' until the company's preferred exchange offer is finalized. S&P will then evaluate the viability of Thornburg's business model and its future financial prospects. S&P believes that if the tender offer is unsuccessful, funding costs will be too high relative to the company's earnings generation capacity.

THORNBURG MORTGAGE: Moody's Reviews Ratings on 54 Tranches----------------------------------------------------------Moody's Investors Service has placed on review for possible downgrade 54 tranches from 7 Jumbo transactions issued by Thornburg Mortgage Securities Trust in 2006 and 2007. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, prime mortgage loans. These reviews are triggered by higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to currently available credit enhancement levels. The actions are a result of Moody's revised expected losses on the Jumbo sector announced on September 18, 2008, and are part of an on-going review process.

Moody's final rating actions in coming months will vary based on current ratings, level of credit enhancement, pool-specific historical performance, quarter of origination, collateral characteristics and other qualitative factors. For deals where the weakest senior Aaa tranche was identified as needing to go under review, Moody's has placed on review for possible downgrade all senior Aaa tranches. Moody's analysis during the review period will take into account credit enhancement provided by seniority, time tranching, and other structural features within the Aaa waterfalls.

TLC VISION: LASIK Decline Cues Moody's Rating Cut to B3 from B2---------------------------------------------------------------Moody's Investors Service downgraded the corporate family rating of TLC Vision Corporation to B3 from B2 following its recent announcement that industry wide LASIK procedure volumes declined in the third quarter. Concurrently, Moody's lowered the probability of default rating to Caa1 from B3 and the ratings on the senior secured credit facilities to B2 from B1. The outlook remains negative.

The ratings downgrade reflects what Moody's believes will be a protracted and accelerated deterioration of demand for refractive procedures across the industry due to reduced consumer discretionary spending in response to a weakened North American economic outlook. In addition, Moody's anticipates that TLCV's leverage will remain elevated in the near term and that liquidity will continue to be tight, particularly as the covenants in the company's senior secured credit facility tighten, as a result of these market conditions. While Moody's recognizes the diversity offered by TLCV's non-refractive businesses, the company remains highly reliant on its refractive businesses which are facing a weak operating environment, a reduction in procedure volumes and revenues and deteriorating margins.

The negative ratings outlook continues to reflect, the company's weak liquidity profile, the challenging end-market conditions created by the reduction in consumer discretionary spending and a capital structure that is characterized by high financial leverage. Further, negative actions could occur if TLCV begins generating negative free cash flow, leverage continues to increase and/or the company losses access to its revolving credit facility.

Moody's added that further ratings pressure will likely remain until procedure volumes stabilize. The stabilization of procedure volumes by the company coupled with improved margin performance and a meaningful reduction in leverage would likley alleviate ratings pressure.

These ratings were downgraded:

-- Corporate Family Rating to B3 from B2; -- Probability of Default Rating to Caa1 from B3; -- Senior Secured Revolver to B2 (LGD2/27%) from B1 (LGD2/27%); and

-- Senior Secured Term Loan to B2 (LGD2/27%) from B1 (LGD2/27).

This rating was affirmed:

-- SGL-4 Speculative Grade Liquidity Rating;

The previous rating action for TLCV was the August 6, 2008 downgrade to B2 from B1 and change in outlook to negative from stable.

Headquartered in Mississauga, Ontario, Canada, TLC Vision Corporation is a diversified eye care services company with a majority of the company's revenues generated from laser refractive surgery, which involves an excimer laser to treat common refractive vision disorders such as myopia, hyperopia and astigmatism. For the 12 months ended June 30, 2008, the company generated approximately $299 million in revenues.

TOUSA INC: Court Urges Creditors to Work For Consensual Plan------------------------------------------------------------------The Hon. John K. Olson of the U.S. Bankruptcy Court for theSouthern District of Florida has expressed concerns about thepresent condition of the economy and financial markets with respect to Tousa, Inc.'s reorganization, Bloomberg News reports.

At a hearing October 2, 2008, Judge Olson pointed out to parties-in-interest to consider the impact of expensive litigation costs and availability of estate funds for professional fees, Bloomberg relates.

The Court further noted that its unclear when the credit markets will improve to enable Tousa to start rehabilitating its business. "I suspect it's unclear to most of you who are here, when the credit markets will thaw sufficiently to enable the debtors' homebuilding enterprise to operate at anything approaching normal," Bloomberg quoted Judge Olson as saying.

"If there are any parties participating in the negotiations of a plan who may be holding out more in the face of the falling real estate values, I would urge them, and I urge all of you, to reconsider," Judge Olson told parties-in-interest and lawyers who attended the Oct. 2 hearing, according to Bloomberg.

Bill Rochelle at Bloomberg News says Judge Olson may be directing his call for reconsideration to parties of a complaint commenced by the Official Committee of Unsecured Creditors against certain lenders of Tousa, including Citicorp, North America, Inc., and Wells Fargo Bank. The Committee seeks to recover certain fraudulent transfers made to the lenders, aggregating $800 million. The Complaint is currently pending before the Bankruptcy Court.

About TOUSA Inc.

Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets:TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, NewmarkHomes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leadinghomebuilder in the United States, operating in variousmetropolitan markets in 10 states located in four major geographicregions: Florida, the Mid-Atlantic, Texas, and the West. TOUSAdesigns, builds, and markets high-quality detached single-familyresidences, town homes, and condominiums to a diverse group ofhomebuyers, such as "first-time" homebuyers, "move-up" homebuyers,homebuyers who are relocating to a new city or state, buyers ofsecond or vacation homes, active-adult homebuyers, and homebuyerswith grown children who want a smaller home. It also providesfinancial services to its homebuyers and to others through itssubsidiaries, Preferred Home Mortgage Company and Universal LandTitle Inc.

TOWERS OF CORAL: Has Ties to 2007 Fraud Convictions of Paul Fraynd------------------------------------------------------------------Towers of Coral Springs, Ltd., which filed for Chapter 11 bankruptcy protection on Oct. 1, is led by Marcos and Paul Fraynd, who pleaded guilty last year to charges connected with a fraud scheme at Aries Insurance Co., the South Florida Business Journal says.

According to the report, the bankruptcy filing was signed by treasurer Paul Fraynd. The partnership members are listed as Towers of Coral Springs, which lists Marcos and Paul Fraynd as officers.

Citing a Florida State press release from 2007, the report says that Paul Fraynd pleaded guilty to first-degree grand theft. His family members, Marcos and Saul Fraynd, both pleaded guilty to filing a false statement, a third-degree felony.

The Business Journal adds that the state attorney general's office said the Fraynds were ordered to pay $5.5 million in restitution to victims of the Aries Insurance fraud.

Towers of Coral Springs, Ltd. owns a office building in Coral Springs, Florida. The company filed for Chapter 11 relief on Oct. 1, 2008 (Bankr. S.D. Fla. Case no. 08-24557). Brian S. Behar, Esq, at Behar, Gutt & Glazer, P.A. represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed assets of $10 million to $50 million, and debts of $1 million to $10 million.

TRONOX INC: Jonathan Gallenn Discloses 10.9% Stake--------------------------------------------------Jonathan Gallenn, in his capacity as the investment manager for Ahab Opportunities L.P. and Ahab Opportunities, Ltd., disclosed in a Securities and Exchange Commission filing that he may be deemed to beneficially own 2,500,900 shares of Tronox Incorporated's common stock, representing 10.9% of the 22,889,431 shares of Class B common stock, par value $0.01 per share, outstanding as of July 31, 2008.

About Tronox

Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) --http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic whitepigment used in paint, coatings, plastics, paper and many othereveryday products. The company's five pigment plants, which arelocated in the United States, Australia, Germany and theNetherlands, supply performance products to approximately 1,100customers in 100 countries. In addition, Tronox produceselectrolytic products, including sodium chlorate, electrolyticmanganese dioxide, boron trichloride, elemental boron and lithiummanganese oxide.

As reported by the Troubled Company Reporter on August 27, 2008,Tronox said in a regulatory filing that it is evaluating allstrategic options for the company, including mitigation ofenvironmental liabilities and capital restructuring. Tronoxsaid it has experienced significant losses for the year endedDecember 31, 2007, and the six months ended June 30, 2008, and hasgenerated negative cash flows from operations in the current year. Tronox said that if it continues to experience negative impacts onits operations, it may need to seek relief under Chapter 11 of theUnited States Bankruptcy Code to allow the company to, among otherthings, restructure its capital structure and reorganize itsbusiness, including its environmental legacy issues.

The company has $1.7 billion in total assets, including $703.5million in current assets, as at June 30. The company has $937.8million in current debts and $336.9 million in total noncurrentdebts.

Tronox has retained the investment banking firm Rothschild Inc. tofurther assist the company in evaluating strategic options for thebusiness.

On May 22, 2008, the company announced an involuntary work forcereduction program as part of its ongoing efforts to reduce costs.As a result of the program, the company's U.S. work force wasreduced by 31 employees. An additional 38 positions that werevacant prior to the work force reduction will not be filled. Therewere no costs associated with the elimination of vacant positions.The program was substantially completed as of June 30, 2008.

On Aug. 28, 2008, the Company was notified by the New York StockExchange that it is not in compliance with the NYSE's continuedlisting standard regarding the average closing price of its ClassB Common Stock. The Company said it has not decided on whataction, if any, it will take with respect to its failure tosatisfy NYSE listing standards. If the Company fails to cure itslisting deficiencies, the NYSE will commence suspension anddelisting procedures.

The TCR said on Sept. 18 that Tronox has been sued by the U.S.Government to recover costs related to hazardous substances at orfrom the Federal Creosoting Superfund site located in the boroughof Manville, Somerset County, New Jersey. According to thecomplaint, as of June 15, 2008, the government has incurred atleast $280 million in unreimbursed response costs related to thecleanup.

Moody's Investors Service has downgraded affiliate TronoxWorldwide LLC's Corporate Family Rating to Caa3 from Caa2, and theProbability of Default Rating was lowered to Ca from Caa3. Inaddition, Moody's has downgraded the company's secured revolverand term loan to B2 from B1 and its unsecured notes to Ca fromCaa3. Standard & Poor's Ratings Services has lowered its ratingson Tronox, including its corporate credit rating to 'CCC-' from'CCC+'.

TRW AUTOMOTIVE: Guidance Withdrawal Cues Moody's Rating Review--------------------------------------------------------------Moody's Investors Service has placed the Ba2 Corporate Family Rating of TRW Automotive, Inc. under review for possible downgrade. The action follows the company's announcement that it is withdrawing guidance for fiscal year 2008 provided on July 31, 2008.

In addition, the Company now expects a net loss for its 2008 third quarter on lower than anticipated sales, significantly higher restructuring expenses and increased commodity costs. TRW plans to provide revised guidance for fiscal year 2008 when the company announces its third quarter financial results on October 30, 2008. The company's Speculative Grade Liquidity rating of SGL-1 is unchanged.

Moody's review is focusing on the degree to which TRW will be able to adjust its operating structure to contend with the severe downturn in North American automotive markets and the increasing likelihood of weaker demand in Europe. These more challenging conditions could result in further pressure on the company's credit metrics. In January 2008, TRW's outlook was changed to negative reflecting concern that weakening economic trends in North America and Europe could challenge TRW to sustain financial metrics consistent with its current Ba2 rating.

While the company's first-half 2008 performance compared favorably with the first-half 2007 period, the company's second half performance will reflect the negative impact of lower production and product mix changes in both North American and Europe, along with increased commodity costs. These pressures are expected to continue into 2009. Moody's expects TRW's safety product focus, and its strong geographic, customer and product diversification to continue to help mitigate industry pressures.

However, interest expense savings resulting from the company's debt refinancing in 2007 are expected to be somewhat offset by industry pressures on operating performance in the second half of 2008 and into 2009.

TRW's liquidity rating of SGL-1 encompasses the company's cash and cash equivalent balances at June 27, 2008 of $453 million and approximately $1 billion of availability under its $1.4 billion revolving credit facilities. At June 27, 2008 TRW maintained ample covenant cushion under its bank credit facilities. The current operating challenges may weaken TRW's credit metrics.

However, Moody's expects that the company will remain well in compliance with the borrowing agreement's financial covenants over the near-term. Alternative liquidity arrangements will continue to be limited by the current bank liens over substantially all of the company's assets. Moody's review will also assess the impact of the current industry environment on TRW's ability to generate positive free cash flow over the next 12 months and any potential stress on the SGL-1 rating.

-- Ba3 (LGD5, 72%) for the $600 million senior unsecured notes due 2017;

The last rating action was on January 23, 2008 when ratings were affirmed and the outlook changed to negative.

TRW Automotive, Inc., headquartered in Livonia, Michigan, is among the world's largest and most diversified suppliers of automotive systems, modules, and components to global vehicle manufacturers and related aftermarket. The company has three operating segments; Chassis Systems, Occupant Safety Systems, and Automotive Components. Its primary business lines encompass the design, manufacture and sale of active and passive safety related products. Revenues in 2007 were approximately $14.7 billion.

VAIL RESORTS: Moody's Lifts CF and PD Ratings to 'Ba2' from 'Ba3'-----------------------------------------------------------------Moody's Investors Service upgraded Vail Resorts' corporate family rating and probability of default rating to Ba2 from Ba3 and the rating on the senior subordinated notes to Ba3 from B1. The rating outlook is stable.

The upgrade considers the improvement of Vail's financial profile over recent years. It also reflects Moody's expectation that going forward the company's leverage and cash flow to debt metrics will remain commensurate with the Ba2 rating category, even though some deterioration from the strong level reached at the end of fiscal year 2008 is likely in the near term, considering the challenging economic conditions.

The rating action further assumes that the company's financial policy will be conservative with regards to capital spending, acquisitions and share repurchases.

Total adjusted debt/EBITDA of 2.6 times and retained cash flow/net adjusted debt of 72.9% as of July 31, 2008, were above average metrics for the Ba2 rating category. While the company's financial metrics could deteriorate in the current fiscal year, as weak economic conditions are likely to affect domestic and international skier visits, lift ticket sales and lodging bookings, and the real estate segment is expected to be less cash flow generative, Moody's anticipates that Vail's financial profile will remain robust.

In the intermediate term, the rating agency expects total adjusted debt/EBITDA and retained cash flow/net adjusted debt to remain below 3.5 times and above 25%, respectively, counterbalancing several business risk factors including the company's earnings concentration, exposure to weather and macro-economic conditions, seasonality and cash flow lumpiness linked to its real estate activity.

Additionally, Moody's expects Vail's liquidity to remain good, based on its large cash balance, good availability under its $400 million revolver and ample room under its financial covenants.

The rating outlook is stable; Moody's recognizes that Vail enjoys some financial flexibility with regards to its resort and real estate expenditures. Should EBITDA decline more sharply than expected or should the company pursue share buy-backs or acquisitions, the rating agency would expect capital spending to reduce in order to maintain adequate financial metrics for the Ba2 rating category.

Moody's changed Vail's rating outlook to positive from stable on December 21, 2006.

These ratings have been upgraded:

-- Corporate family rating to Ba2 from Ba3 -- Probability of default rating to Ba2 from Ba3 -- Senior subordinated notes rating to Ba3 from B1 (LGD assessment revised to LGD5/74% from LGD5/75%).

Vail is a publicly-traded holding company that owns and operates through its subsidiaries five world-class ski resort properties in the Colorado Rocky Mountains and the Lake Tahoe area of California/Nevada, as well as ancillary businesses, primarily including ski school, dining and retail/rental operations. The company also owns or manages 20 lodging properties, and develops real estate in and around the resort communities. Net revenues for the fiscal year ending July 31, 2008 were approximately $1.2 billion.

VERSO TECH: $9.8MM Sale of 4 Businesses Raises $1.4MM In Cash-------------------------------------------------------------According to Bill Rochelle of Bloomberg News, Verso Technologies Inc., and its debtor-affiliates reported that $9.8 million generated from selling four businesses produced $1.4 million in available cash after paying $7.7 million owing to the first-lien secured creditor.

According to Troubled Company Reporter, an initial bidder Telemate Holdings, LLC, is willing to pay $1.92 million for the networking and security business of the Debtors and Telemate.Net Software, Inc., subject higher and better offers at an auction Oct. 14, 2008.

About Verso Technologies

Headquartered in Atlanta, Georgia, Verso Technologies Inc.(OTC:VRSOQ) -- http://www.verso.com/-- provides telecommunications service in the United States. The company andits affiliates manufacture, deliver, and provide support forhardware, software and service solutions primarily to largewireline, cellular, wireless and satellite carriers.

The company and four of its affiliates filed for Chapter 11protection on April 25, 2008 (Bankr. N.D. Ga Lead Case No.08-67659). J. Robert Williamson, Esq., at Scroggins andWilliamson, James R. Sacca, Esq., and John D. Elrod, Esq., atGreenberg Traurig, LLP represent the Debtors as counsel. TheDebtors selected Logan and Company Inc. as their claims agent.

Darryl S. Laddin, Esq., and Stephen M. Dorvee, Esq., at ArnallGolden Gregory LLP represent the Official Committee of UnsecuredCreditors. When the Debtors filed for protection from theircreditors, they listed total assets of $34,263,000 and total debtsof $36,657,000.

VPG INVESTMENTS: Judge to Rule on Bankruptcy in Two Weeks---------------------------------------------------------Judge Terry Myers of the U.S. Bankruptcy Court for the District of Idaho said Friday he'll decide within two weeks whether to dismiss the bankruptcy cases of two real estate companies that own a majority of troubled Tamarack Resort LLC, a move that could help clear the way for investment bank Credit Suisse to gain control of the resort, the Associated Press reports.

Attorneys for Jean-Pierre Boespflug, Tamarack's chief executive officer who owns 50.6% of the resort, and Alfredo Miguel Afif, its chairman who owns 26%; and for Credit Suisse participated in a three-hour court hearing.

The report says Judge Myers would be rendered a decision by October 16.

AP notes that Credit Suisse filed a lawsuit in March after Messrs. Boespflug's and Miguel's companies didn't fulfill their agreement to cover Tamarack's debt obligations when the resort defaulted on a $260 million syndicated loan. The bank now contends Mr. Boespflug and Mr. Miguel inappropriately sought bankruptcy protection for their companies to buy time for the resort to find a new investor.

Friday's hearing came a day after AP reported Mr. Boespflug planned to inject enough of his personal funding to open skiing in December -- but wouldn't commit to keeping the resort 90 miles north of Boise afloat until season's end without additional money from new investors.

According to AP, construction on Tamarack's Village Plaza centerpiece is at a standstill, with at least $56 million needed to finish the project. Bank of America and Sterling Bank plan separate foreclosure auctions for the resort's conference center and employee housing after Tamarack fell behind on payments.

In Friday's hearing, AP says, Credit Suisse argued that when Mr. Boespflug's Cross Atlantic Real Estate LLC and Mr. Miguel's VPG Investments filed for Chapter 11 bankruptcy protection Feb. 15, they sought only to buy time. They acted in bad faith by seeking not to reorganize their own companies, but rather to buy time for Tamarack to restructure and to keep the bank from replacing resort management, Credit Suisse's lawyers said.

"It's crystal clear they filed the case to stop us from executing on our state law rights," said Joel Samuels, an attorney for the Zurich, Switzerland-based bank, according to the report. "They filed to use bankruptcy as a parking space."

AP says Justin May, Esq., Mr. Boespflug's lawyer, countered that his client's continued personal financial commitment to Tamarack after seeking bankruptcy protection was ample evidence that he was sincere about protecting not only his own stake, but also the value of Tamarack Resort.

Mr. Boespflug has made $11 million in loans to the resort since April, with a 15% return to be paid to him upon a successful refinancing, AP notes.

In a separate foreclosure lawsuit filed by Credit Suisse against Tamarack in Idaho's 4th District Court, the bank in late September submitted a plan for a $10 million loan to a proposed receiver it's asking the court to appoint to assume resort management, according to court documents obtained by AP.

According to the documents, the $10 million would fund a 90-day budget, including winterization of the Village Plaza and the cost of starting up the ski hill. A new hearing on the proposed receivership, which a judge denied once in July, is planned for Oct. 15 in Cascade, Idaho.

About Tamarack Resort

Tamarack Resort LLC -- http://www.tamarackidaho.com/-- is the first all-season resort to open in the U.S. in 24 years and hasreceived national attention for its world-class mountain forskiing, hiking and mountain biking; Osprey Meadows, a Robert TrentJones, Jr., signature golf course; and beautiful Lake Cascade,suitable for swimming, sailing, fishing, sea kayaking, andboating. A key element of the Tamarack community is The Club atTamarack for homeowners, their families and guests. Nestled inIdaho's Payette River Mountains, Tamarack is a luxury boutiqueresort with a variety of lodging options all within walkingdistance of the four-season amenities. It opened in 2004 afterAlfredo Miguel Afif and Jean-Pierre Boespflug took over acontroversial and long-stalled ski resort project.

WACHOVIA CORP: Wells-Citigroup Standstill Extended Until Friday---------------------------------------------------------------Sara Lepro at The Associated Press reports that Wells Fargo & Co. and Citigroup Inc. agreed on Wednesday to extend their litigation standstill in the fight for Wachovia Corp. until 8:00 a.m. on Friday to continue talks to resolve the dispute.

As reported in the Troubled Company Reporter on Oct. 8, 2008, Wachovia agreed with Citigroup and Wells Fargo to a standstill of all formal litigation activity until Oct. 8, 2008. Citigroup had filed a complaint in the Supreme Court of the State of New York against Wachovia, Wells Fargo, and the directors of the two companies on Oct. 4 for tortious interference with Citigroup's contract with Wachovia. The Hon. Charles Ramos of the Supreme Court of the State of New York granted Citigroup an emergency injunctive relief extending the company's Exclusivity Agreement with Wachovia until further order of the court, but an appellate court issued an order vacating Judge Ramos's order. Citigroup will most likely acquire branches from Wachovia in the Northeast and mid-Atlantic region, while sources said that Wells Fargo would get Wachovia branches in the Southeast and California as well as the asset-management and brokerage arms, sending the bulk of Wachovia's balance sheet to Wells Fargo.

Wells Fargo may acquire Wachovia and sell parts to Citigroup, Ari Levy and Bradley Keoun at Bloomberg News relate, citing a source familiar with the matter. The AP states that if a deal is reached, Wells Fargo said it would take a $74 billion hit on Wachovia's $498 billion loan portfolio and that it would incur the majority of credit costs in the next two years.

Bloomberg states that U.S. District Judge Lewis Kaplan in Manhattan postponed a hearing set for Oct. 8 on a lawsuit by Wachovia seeking to have the deal with Wells Fargo declared valid.

Reuters relates that Judge Ramos's clerk said that the judge postponed a Friday hearing to Oct. 14 on Citigroup's action to stop Wachovia and Wells Fargo merging.

About Citigroup Inc.

Headquartered on New York City, Citigroup Inc., a.k.a. Citi (NYSE: C) -- http://www.citigroup.com/citigroup/-- a leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. The company's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko.

About Wells Fargo

Wells Fargo & Company -- http://wellsfargo.com-- is a diversified financial services company with $609 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores and the internet across North America and elsewhere internationally.

About Wachovia Corporation

Based in Charlotte, North Carolina, Wachovia Corporation (NYSE:WB) -- http://www.wachovia.com/-- is one of the nation's diversified financial services companies, with assets of $812.4 billion at June 30, 2008. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,300 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Clients are served in selected corporate and institutional sectors and through more than 40 international offices. Its retail brokerage operations under the Wachovia Securities brand name manage more than $1.1 trillion in client assets through 18,600 registered representatives in 1,500 offices nationwide. Online banking isavailable at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.com.

Wachovia is exposed to large mortgage losses as a result of its2006 purchase of mortgage lender Golden West Financial Corp.,according to The Wall Street Journal. The company, WSJ stated,now believes total losses for Golden West's payment option loanportfolio could eventually reach 12%, up from previous forecasts.

Wachovia has lowered its second-quarter results to account for a possible legal settlement. Wachovia said its second-quarter net loss will be $9.11 billion instead of $8.86 billion. It has disclosed a $500 million pretax increase to legal reserves.Wachovia has also disclosed plans to lay off 6,950 people toreduce expenses.

As reported in the Troubled Company Reporter on Oct. 2, 2008,Moody's Investors Service lowered Wachovia Corporation's preferred stock rating to Ba3 from A3 and placed it under review with direction uncertain.

As reported in the Troubled Company Reporter on Oct. 1, 2008,Standard & Poor's Ratings Services placed all its ratings onWachovia Corp. and Wachovia Bank on CreditWatch with negativeimplications. S&P also lowered its DRD Series J and Kand convertible preferred stock Series L ratings on WachoviaCorporation to 'BB' from 'A-', as these securities will not beacquired and will continue to reside with the new Wachovia.

WASHINGTON MUTUAL: Section 341(a) Meeting Set for October 30------------------------------------------------------------Roberta DeAngelis, Acting United States Trustee for Region 3, is set to convene a meeting of creditors of Washington Mutual, Inc., and WMI Investment Corp., on October 30, 2008, 10:00 a.m., at J. Caleb Boggs Federal Building, Room 5209, 844 King Street, in Wilmington, Delaware.

The meeting, which is required under Section 341(a) of the Bankruptcy Code, offers the creditors a one-time opportunity to examine the Debtors' representative under oath about their financial affairs and operations that would be of interest to the general body of creditors.

Washington Mutual Bank was taken over Sept. 25 by U.S. governmentregulators. The next day, WaMu and its debtor-affiliate, WMIInvestment Corp., filed separate petitions for Chapter 11 relief(Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns100% of the equity in WMI Investment. Weil Gotshal & Mangesrepresents the Debtors as counsel. When WaMu filed for protectionfrom its creditors, it listed assets of $32,896,605,516 and debtsof $8,167,022,695. WMI Investment listed assets of $500,000,000to $1,000,000,000 with zero debts.

WAVE SYSTEMS: Selling 8% Convertible Stock to Raise Funds---------------------------------------------------------Wave Systems Corp. disclosed in a Securities and Exchange Commission filing that it is selling to investors 48 shares of8% Series I Convertible Preferred Stock at a price of $4,400 per share, yielding gross proceeds in the amount of $211,200. The net proceeds of the financing will be used to fund Wave's ongoing operations.

Each share of Series I Convertible Preferred Stock will be convertible into 10,000 shares of Class A common stock -- at a conversion rate of $0.44 per Class A Common share -- (i) upon the election of the holder thereof at any time or (ii) automatically on the date on which the average closing price per share of Wave Class A common stock for the 15 consecutive trading day period then ended equals or exceeds $1.10. In aggregate, the Series I Convertible Preferred Stock issued in the transaction is convertible into 480,000 shares of Wave's Class A common stock.

Dividends will accrue at 8% per annum from the date of issuance, payable every six months in either cash or in shares of Wave common stock at a rate also equal to $0.44 per share of Wave Class A common stock. The Series I Convertible Preferred Stock has no anti-dilution protection, other than proportionate adjustments for stock splits and similar events. Prior to conversion, the Series I Convertible Preferred Stock has no voting rights other than consent rights in respect of modifications to the terms of the Series I Convertible Preferred Stock.

The securities being offered are being issued under a $25 million shelf registration statement declared effective by the Securities and Exchange Commission on June 23, 2008. A prospectus supplement related to the public offering will be filed with the Securities and Exchange Commission.

As reported in the Troubled Company Reporter on March 28, 2008,KPMG LLP, in Boston, expressed substantial doubt about WaveSystems Corp.'s ability to continue as a going concern afterauditing the company's consolidated financial statements for theyears ended Dec. 31, 2007, and 2006. The auditing firm pointed tothe company's recurring losses from operations and accumulateddeficit.

The company's balance sheet as of June 30, 2008, showed $2.16 million in total assets, $5.12 million in total current liabilities, and $2.96 million in shareholders' deficit. The company had $335.1 million in accumulated deficit.

At June 30, 2008, the company's consolidated balance sheet also showed strained liquidity with $5.12 million in total current assets available to pay $1.4 million in total current liabilities.

The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, prime mortgage loans. These reviews are triggered by higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to currently available credit enhancement levels. The actions are a result of Moody's revised expected losses on the Jumbo sector announced on September 18, 2008 and are part of an on-going review process.

Moody's final rating actions in coming months will vary based on current ratings, level of credit enhancement, pool-specific historical performance, quarter of origination, collateral characteristics and other qualitative factors. For deals where the weakest senior Aaa tranche was identified as needing to go under review, Moody's has placed on review for possible downgrade all senior Aaa tranches. Moody's analysis during the review period will take into account credit enhancement provided by seniority, time tranching, and other structural features within the Aaa waterfalls.

The downgrade to B3 reflects the company's anticipated free cash flow generation relative to its high debt and financial leverage, and a diminished intermediate term outlook for business conditions. The company did not meet delevering expectations that were presumed by Moody's when it assigned its B2 rating. Furthermore, Moody's estimates that the company's debt to EBITDA leverage for 2009 will exceed 7x.

The affirmation of the Baa1 rating on the company's $1.0 billion term loan reflects the guarantee from The Home Depot, Inc. The affirmation of the $300 million revolving credit facility reflects the high level of collateral coverage that is anticipated under a default scenario.

Although only one third of the company's business is tied to the residential market, the magnitude of the slowdown in new residential construction has been unusually severe. The slowdown in the remodeling segment has also been more severe than past slowdowns. Several of the company's non-residential businesses are tied to municipalities that may experience budget pressure as well. As the company's free cash flow generation declines, material deleveraging and debt reduction will remain evasive.

The ratings outlook is stable. Though diminished, cash flow generation is anticipated to be positive over the next 12 months even as residential construction remains under pressure. Facilities maintenance expenditures for REITs and apartments, and public waterworks, are expected to remain reasonably stable during the downturn.

HD Supply, Inc. is one of the largest, most diversified wholesale distributors in the U.S. and Canada of products and services in the Infrastructure & Energy, Maintenance, Repair & Improvement and Specialty Construction markets. The company provides products and services to professional customers such as contractors, home builders, maintenance professionals, government entities, and industrial businesses.

HD Supply operates through approximately 900 locations located in 45 U.S. states and 9 Canadian provinces. HD Supply, Inc. was purchased by the Carlyle Group, Bain Capital, and Clayton, Dubilier & Rice in August 2007 for $8.5 billion. The Home Depot, Inc. has retained a minority ownership interest in HD Supply, Inc. Moody's previous rating action on HD Supply was on September 27, 2007 when a B2 CFR was assigned.

WM WRIGLEY: Moody's Cuts Debt Rating to 'Ba2' After Mars Deal-------------------------------------------------------------Moody's Investors Service downgraded the senior unsecured debt rating of the Wm. Wrigley Jr. Company to Ba2 from A1, revised its short-term rating to Not Prime from Prime-1, and assigned a stable rating outlook following the company's completion of its merger with Mars, Incorporated. This concludes the ratings review that began on April 28, 2008 following Wrigley's announcement of the merger agreement valued at approximately $23 billion.

Wrigley's Ba2 ratings reflect the increased financial leverage resulting from the incurrence of transaction related debt. The ratings take into account Wrigley's overall modest scale as compared to its packaged goods peers, its narrow product portfolio, and an unfavorable shift in financial policy as it relates to debtholders. While credit metrics are weaker than those typical of a Ba2 rated company, the ratings are supported by Wrigley's strong business fundamentals including its global geographic reach, leading market shares in core categories, and high profit margins.

Ratings downgraded:

-- Senior unsecured debt to Ba2 from A1 (LGD-4, 51%); -- Senior unsecured shelf to (P)Ba2 from (P)A1; -- Short term debt to Not Prime from Prime-1.

Ratings assigned:

-- Corporate family rating at Ba2; -- Probability of default rating at Ba2.

Wm. Wrigley Jr. Company, based in Chicago, Illinois, is a leading global confectionery products company and the largest manufacturer of chewing gum in the world. Wrigley's products are sold in over 180 countries. Key brands include: Doublemint, Juicy Fruit, Orbit, Extra, Airwaves, Eclipse, Altoids and Life Savers. Net revenues in fiscal 2007 totaled $5.4 billion.

WOODSIDE GROUP: U.S. Trustee Objects to Salaries------------------------------------------------Bill Rochelle of Bloomberg News reports that the U.S. Trustee filed an objection with the U.S. Bankruptcy Court for the Central District California to the salaries of 19 officers and employees of homebuilder Woodside Group, LLC, and its debtor-affiliates who are scheduled to earn between $155,000 and $240,000 a year.

The Trustee also filed an objection with the Court to the salaries of nine other lower-paid workers, according to the report.

Woodside Group LLC and its debtor-affiliates --http://www.woodside-homes.com/-- are homebuilders. The Debtor group, together with several other homebuilders, is continuing todevelop the Inspirada master-planned community in Henderson,Nevada.

On March 31, 2008, Woodside AMR 107, Inc. and Woodside Portofino,Inc. filed voluntary petitions for relief under Chapter 11 of theUnited States Bankruptcy Code. On August 20, 2008, an Ad HocGroup of Noteholders commenced the filing of involuntary petitionsagainst the remaining 185 debtors. On August 20, 2008, JPMorganChase Bank, N.A., on behalf of the Bank Group, commenced thefiling of certain Joinders in the Involuntary Petition. OnSeptember 16, 2008, the Debtors filed a "Consolidated Answer toInvoluntary Petitions and Consent to Order for Relief" and theCourt entered the "Order for Relief Under Chapter 11."

The 187 Debtors are jointly administered under Case No. 08-20682.The Bankruptcy Cases are currently pending before the HonorablePeter Carroll in the United States Bankruptcy Court for theCentral District of California (Riverside).

During 2007, the Woodside Entities generated revenues exceeding$1 billion on a consolidated basis. As of December 31, 2007, the Woodside Entities had consolidated assets and liabilities of approximately $1.5 billion and $1.1 billion, respectively. As of the September 16, 2008 petition date, the Debtors have approximately $70 million in cash. The Woodside Entities employ approximately 494 employees.

YRC WORLDWIDE: Reaffirms Financial Forecast for Second Half 2008----------------------------------------------------------------YRC Worldwide, Inc., in a Securities and Exchange Commission filing, reaffirmed that it expects to have positive free cash flow in both the third and fourth quarters of 2008 with a significant debt reduction for the year. In addition, the company expects to remain in full compliance with all terms of its credit agreement, including the leverage ratio.

"With more than $9 billion in annual revenue and comprehensive networks in the national and regional markets, we continue to provide excellent service to our customers each and every day," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "Despite the continuing unrest in the broad financial markets, our current financial position is solid and we remain well positioned to weather this economic environment."

The company has subsidiaries in Bermuda, the United Kingdom,Netherlands, Singapore, Hong Kong and Mexico.

* * *

As reported in the Troubled Company Reporter on April 29, 2008,Standard & Poor's Ratings Services affirmed its ratings on YRCWorldwide Inc., including the 'BB' corporate credit rating, andremoved the ratings from CreditWatch, where they had been placedwith negative implications on Feb. 21, 2008. The outlook isnegative. The ratings had been placed on CreditWatch because ofheightened concerns over the company's refinancing risk,earnings performance, and liquidity position over the next year,given the slowing U.S. economy and continuing pressures in thetrucking sector.

YRC WORLDWIDE: Warns of Likely Impairment of Goodwill, Trade Names------------------------------------------------------------------YRC Worldwide Inc., disclosed in a Securities and Exchange Commission filing that due to its current market capitalization of YRC Worldwide Inc., and in light of current economic conditions, the company's management believes that, as of Sept. 30, 2008, the possibility of impairment exists in connection with goodwill and trade names for the National Transportation segment, trade names for the Regional Transportation segment and goodwill for the YRC Logistics segment.

As a result of these indicators, the Company is testing these assets. Once the impairment tests are complete, the Company will be able to conclude whether any impairment exists and to what extent, if any, an impairment charge should be included in the Company's third quarter 2008 financial results. Such impairment charge, if any, would be non-cash in nature and excluded from the leverage ratio calculation under the Company's credit facility and asset-backed securitization facility.

The company has subsidiaries in Bermuda, the United Kingdom,Netherlands, Singapore, Hong Kong and Mexico.

* * *

As reported in the Troubled Company Reporter on April 29, 2008,Standard & Poor's Ratings Services affirmed its ratings on YRCWorldwide Inc., including the 'BB' corporate credit rating, andremoved the ratings from CreditWatch, where they had been placedwith negative implications on Feb. 21, 2008. The outlook isnegative. The ratings had been placed on CreditWatch because ofheightened concerns over the company's refinancing risk,earnings performance, and liquidity position over the next year,given the slowing U.S. economy and continuing pressures in thetrucking sector.

According to Moody's, the rating actions are a result of the deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities.

* Focus Management Selects Ellen Gordon as Managing Director------------------------------------------------------------Focus Management Group has named Ellen Gordon as a managing director to compliment the firm's demand for its restructuring and case management services and to further broaden its West Coast presence.

"The addition of Ellen to our restructuring and case management team augments our firm˙s ability to serve our clients in a wide range of out-of-court and court-appointed restructuring situations," said J. Tim Pruban, President of Focus Management Group. "Her demonstrated management and leadership abilities will be a valuable resource in expanding our delivery of bankruptcy services to our clientele and will facilitate our firm˙s steady growth in the West Cost and nationwide."

With over 20 years of professional experience in providing restructuring and financial consulting services, Gordon brings a wealth of knowledge in bankruptcy law, claims management, analysis and negotiation. Ms. Gordon has a proven track record with engagements involving turnarounds, loan workouts and bankruptcies, from pre-petition planning through first day motions, claims management, plan confirmation and post-confirmation trustee services.

Prior to joining Focus Management Group, Ms. Gordon served as a Managing Director for a leading financial consulting firm, where she was responsible for providing bankruptcy case management services, including pre-petition planning, preparation of SOFAs and Schedules, claims analysis and management, plan confirmation and post-confirmation trust services.

Ms. Gordon received her Master's Degree in Business Administration from Chapman University and her Bachelor's Degree from in Economics from Claremont McKenna College. She is based out of Focus Management Group's Los Angeles office and can be reached at (310) 255-8871.

About Focus Management Group

Focus Management Group -- http://www.focusmg.com/-- provides nationwide professional services in turnaround management,insolvency proceedings, business restructuring and operationalimprovement with a senior-level team of eighty professionals. Headquartered in Tampa, FL, with offices in Atlanta, Chicago,Cleveland, Greenwich, Los Angeles and Nashville, the firm providesa full portfolio of services to distressed companies and theirstakeholders, including secured lenders and equity sponsors.

Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition of the TCR.

For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852.

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